ADA Price Prediction: IOHK Weekly Update Leaves $0.420 in View

Key Insights:

• ADA rose by 1.51% on Friday to extend its winning streak to four sessions.
• Input Output HK updates and market sentiment toward the Cardano network delivered another bullish session.
• The technical indicators are bullish, supporting a return to $0.450.

ADA rose by 1.51% on Friday. Following a 0.25% gain on Thursday, ADA ended the day at $0.404. ADA ended the session at the $0.400 handle for the first time since November 7.

After a mixed morning, ADA fell to an early afternoon low of $0.395. Steering clear of the First Major Support Level (S1) at $0.389, ADA rose to a late afternoon high of $0.407. However, coming up short of the First Major Resistance Level (R1) at $0.411, ADA eased back to end the day at $0.404.

IOHK Weekly Development Update and Stablecoin News Delivers Support

On Friday, Input Output HK (IOHK) released the Weekly Development Report, which delivered ADA price support.

According to the February 3 report,

• 116 projects launched on the Cardano network, up by three from January 27.
• Projects building on the Cardano network totaled 1,200, up by nine from the previous report.
• Plutus scripts totaled 5,689, of which 680 were Plutus V2 scripts. As of January 27, Plutus scripts stood at 5,560.

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 60.4 million transactions (Previous Report: 59.8m), 7.67 million native tokens (PR: 7.63 million), and 69,268 token policies (PR: 68,989).

The upward trend in projects launched and building on the Cardano network continued to draw investor interest.

Earlier in the Friday session, IOHK reshared the latest updates from COTI on the DJED algorithmic stablecoin.

On Thursday, Input Output HK (IOHK) shared the latest from COTI following the launch of the Djed stablecoin. According to the COTI Recap,

• A total liquidity of 28 million ADA on the platform.
• 1.85 million Djed minted and 40k burnt.
• 21 million SHEN minted and 73k burnt.
• DJED and SHEN were on the top Cardano DEXs, including Miniswap, Wingriders, and MuesliSwap.

This morning, the reserve ratio stood at 638% with base reserves of 29,665,859.6 ADA, according to the Djed page, which sits within the 400% to 800% collateral ratio commitment.

According to DeFi Llama, the Cardano total value locked (TVL) stood at $100.93 million this morning., up 2.80% over 24 hours. The upward trend has continued since the start of the year, delivering ADA price support. Year-to-date, the TVL has surged by 98.7% versus an ADA gain of 62.6% and a Cardano Market Cap rise of 63.2%.

Today, network updates will continue to provide direction. Updates on the launch of the EMURGO USDA stablecoin will need monitoring. However, a lack of updates would leave the broader crypto market to provide price direction.

ADA Price Action

This morning, ADA was down 0.99% to $0.400. A bearish start to the day saw ADA fall from an opening price of $0.404 to a low of $0.399.

Technical Indicators

ADA needs to move through the $0.402 pivot to target the First Major Resistance Level (R1) at $0.409. A move through the Friday high of $0.407 would support a bullish session. However, Cardano updates and the broader crypto market would need to provide support.

In the event of a breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.414. The Third Major Resistance Level (R3) sits at $0.426.

Failure to move through the pivot ($0.402) would leave the First Major Support Level (S1) at $0.397 in play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.395 and the Second Major Support Level (S2) at $0.390. The Third Major Support Level (S3) sits at $0.378.

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

ADA sat above S1 ($0.390) and the 50-day EMA, currently at $0.389. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.

A hold above S1 ($0.397) and the 50-day EMA ($0.389) would support a breakout from R1 ($0.409) to target R2 ($0.414). However, a fall through S1 ($0.397) would give the bears a run at S2 ($0.390) and the 50-day EMA ($0.389). A fall through the 50-day EMA would send a bearish signal.