ADA Price Prediction: Cardano Bulls to Target $0.280 on Momentum

Key Insights:

• ADA rose by 0.37% on Thursday, bucking the broader crypto market trend.
• A shift in sentiment toward the Cardano network continued to deliver support. However, US economic indicators and a bearish NASDAQ Index capped the upside.
• The technical indicators are bullish, signaling a possible return to $0.300.

ADA rose by 0.37% on Thursday. Following a 5.93% rally on Wednesday, ADA ended the day at $0.269. Notably, ADA revisited $0.270 for the second time since December 18.

A mixed start to the day saw ADA rise to a mid-morning high of $0.271. Coming up short of the First Major Resistance Level (R1) at $0.275, ADA fell to a late morning low of $0.263. However, steering clear of the First Major Support Level (S1) at $0.257, ADA revisited $0.270 before easing back.

Input Output HK Updates and Cardano Statistics Offset a Bearish NASDAQ Index

On Thursday, Input Output HK (IOHK) posted a series of network updates, providing further price support.

IOHK provided the following statistics,

• 11k members in IOG’s Discord tech community.
• 18k subscribers to IOG’s dev digests.
• Over 1,100 projects in the works on Cardano.
• 3.7 million wallets on the Cardano blockchain.
• 3,200 stake pools support the consensus mechanism.
• Cardano’s subreddit has over 696,000 members.

The latest update follows a shift in sentiment at the turn of the year, supported by Cardano-NFT trading volumes, an upward trend in ADA-total value locked, and increase Cardano usage.

While the stats are price-positive, sentiment toward the launches of two algorithmic stablecoins continues to shift investor sentiment toward demand, with investors anticipating an influx of projects onto the Cardano network also a positive.

Today, US economic indicators and the NASDAQ Index will likely influence, with the all-important US Jobs Report in focus. However, upbeat network news could offset bullish US stats.

ADA Price Action

This morning, ADA was up 1.49% to $0.273. A bullish start to the day saw ADA rise from an early low of $0.269 to a high of $0.277. ADA broke through the First Major Resistance Level (R1) at $0.272 and briefly through the Second Major Resistance Level (R2) at $0.276.

Technical Indicators

ADA must avoid a fall through R1 and the $0.268 pivot to retarget the Second Major Resistance Level (R2) at $0.276. A return to $0.276 would signal an extended breakout session. However, US economic indicators and network updates would have to be price friendly.

In the event of an extended rally, the Third Major Resistance Level (R3) at $0.284 would likely come into play.

A fall through R1 and the pivot would bring the First Major Support Level (S1) at $0.264 into play. Barring a risk-off-fueled sell-off, ADA should avoid sub-$0.260. The Second Major Support Level (S2) at $0.260 should limit the downside. The Third Major Support Level (S3) sits at $0.252.

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

ADA sat above the 100-day EMA, currently at $0.261. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bearish signals.

A move through the 200-day EMA ($0.276) and R2 ($0.276) would support a run at R3 ($0.284). However, a fall through S1 ($0.264) would bring the 100-day EMA ($0.261) and S2 ($0.260) into view. A fall through the 50-day EMA ($0.258) would send a bearish signal.