ADA Price Prediction: Bulls to Target $0.255 after Early Rebound

Key Insights:

• ADA led the top ten on Sunday, rising by 1.63% to end the day at $0.250.
• A lack of network updates left ADA in the hands of the broader crypto market and dip buyers looking for low-hanging fruits.
• However, the technical indicators remain bearish, signaling a possible return to sub-$0.240.

ADA rallied by 1.63% on Sunday. Following a flat Saturday session, ADA ended the day at $0.250. Notably, ADA avoided a loss-making session for a third consecutive day.

Tracking the broader crypto market, ADA fell to a late morning low of $0.243. Finding support at the First Major Support Level (S1) at $0.243, ADA bounced back to end the day at a high of $0.250. Despite the bullish afternoon session, ADA came up short of the First Major Resistance Level (R1) at $0.251.

NFT Statistics Deliver ADA Price Support

It was a quiet Sunday session, with no Input Output HK network updates for investors to consider. The lack of stats left ADA in the hands of the broader crypto market and the latest NFT trading volumes.

Despite holiday crypto-trading volumes, the latest Cardano-NFT statistics delivered further support at the start of the year. According to Opencnft, Cardano-NFT trading volume hovered close to the December high of 1,761,388 ADA on Sunday. While sitting well below the October ATH of 4,271,973 ADA, NFT trading volumes stood at 1,542,055 ADA.

While NFT trading volumes provided price support, the markets will look out for an influx in projects onto the Cardano network to signal a return to $0.300 and a bullish January.

This month, two algorithmic stablecoins will also launch on the Cardano network. However, crypto market conditions will likely dictate the impact of the launches on near-term price action.

With the global financial markets closed today for the holidays, there are unlikely to be any material updates to provide direction. The lack of updates would leave the broader crypto market to influence throughout the session.

However, investors should monitor the crypto news for events that could move the dial.

ADA Price Action

This morning, ADA was flat at $0.250. A mixed start to the day saw ADA rise to an early high of $0.251 before falling to a low of $0.247.

Technical Indicators

ADA needs to avoid a fall through the $0.248 pivot to target the First Major Resistance Level (R1) at $0.252. A move through the Sunday high of $0.252 and R1 ($0.252) would signal a bullish session. However, the broader market would need 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 $0.255. The Third Major Resistance Level (R3) sits at $0.262.

A fall through the pivot would bring the First Major Support Level (S1) at $0.245 into play. Barring another sell-off, ADA should avoid sub-$0.240. The Second Major Support Level (S2) at $0.241 should limit the downside. The Third Major Support Level (S3) sits at $0.234.

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

ADA sat below the 50-day EMA, currently at $0.251. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.

A move through the 50-day EMA ($0.251) and R1 ($0.252) would support a run at R2 ($0.255). A breakout from the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA (0.251) would support another fall to sub-$0.240.