ADA Price Prediction: Bulls to Revisit $0.275 or Face Sub-$0.250

Key Insights:

• ADA rose by 1.52% on Saturday, ending a three-day losing streak.
• A lack of Input Output HK network updates left ADA in the hands of the broader crypto market.
• The technical indicators remain bearish, signaling a possible return to sub-$0.250.

On Saturday, ADA rose by 1.52%. Partially reversing a 12.33% tumble from Friday, ADA ended the day at $0.267. Notably, ADA ended the three-day losing streak.

A mixed start to the day saw ADA fall to an early morning low of $0.259. Steering clear of the First Major Support Level (S1) at $0.245, ADA rose to a late morning high of $0.268.

However, coming up short of the First Major Resistance Level (R1) at $0.268, ADA fell back to an afternoon low of $0.262 before a late move back into positive territory.

Broader Crypto Market Delivers Support After Lackluster Weekly Update

There were no Input Output HK (IOHK) updates for investors to consider on Saturday. The lack of updates left investors to respond further to Friday’s IOHK weekly development report.

According to the Weekly Development Report for December 16,

• 111 projects launched on the Cardano network, up by three from the previous week.
• Projects building on the Cardano network totaled 1,151, unchanged from the previous week.
• Plutus scripts totaled 4,855, of which 402 were Plutus V2 scripts. Plutus scripts stood were up by 508 from the previous week.

Before the Vasil hard fork, the number of projects launched on Cardano had stood at 98, with 1,100 projects building on the Cardano network.

Other stats included 56.8 million transactions (PW: 56.3m), 7.28 million native tokens (PW: 7.20 million), and 66,902 token policies (PW: 66,530).

The latest report dashed hopes of an influx of projects at the turn of the year, supporting the early Saturday pullback.

Easing fears of a Binance liquidity crunch delivered support to ADA and the broader crypto market. However, the upside was modest. Investor confidence remains broken following the FTX collapse, leaving fears of another liquidity crunch to test buyer appetite.

On the plus side, the launches of two algorithmic stablecoins on the Cardano network are around the corner. Successful launches would put Cardano and ADA back in the spotlight.

ADA Price Action

This morning, ADA was up 0.37% to $0.268. A bullish start to the day saw ADA rise from an early low of $0.267 to a high of $0.271 before easing back.

The First Major Resistance Level (R1) at $0.270 capped the early upside.

Technical Indicators

ADA needs to avoid the $0.265 pivot to retarget the First Major Resistance Level (R1) at $0.270 and the morning high of $0.271. A return to $0.270 would signal a bullish session. However, ADA would need the broader market to support a breakout afternoon session.

In the event of an extended rally, the bulls will likely take a run at the Second Major Resistance Level (R2) at $0.274 and $0.280. The Third Major Resistance Level (R3) sits at $0.283.

A fall through the pivot would bring the First Major Support Level (S1) at $0.261 into play. Barring another risk-off-fueled sell-off, ADA should avoid sub-$0.250. The Second Major Support Level (S2) at $0.256 should limit the downside. The Third Major Support Level (S3) sits at $0.247.

This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

ADA sat below the 50-day EMA, currently at $0.295. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

A move through R1 ($0.270) would support a run at R2 ($0.274) to target a return to $0.280. However, ADA will likely fall short of R3 ($0.283) and the 50-day ($0.295). Failure to move back through R1 ($0.270) would leave ADA under pressure. The 200-day EMA sits at $0.318.