ADA Price Prediction: Network News Leaves ADA at Risk of Sub-$0.420

Key Insights:

• On Wednesday, cardano (ADA) fell by 1.15% to end the session at $0.431.
• US economic indicators weighed on the broader crypto market, with ADA seeing a mini two-day winning streak end on hawkish Fed bets.
• The technical indicators remain bearish, with ADA below the 50-day EMA to leave sub-$0.40 in play.

On Wednesday, ADA fell by 1.15%. Partially reversing a 1.87% gain from Tuesday, ADA ended the day at $0.431.

A mixed start to the day saw ADA strike an early high of $0.437. Coming up short of the First Major Resistance Level (R1) at $0.441, ADA slid to an early afternoon low of $0.424. ADA fell through the First Major Support Level (S1) at $0.428 before a late afternoon partial recovery to end the day at $0.431.

US Economic Indicators Raise Bets of a Hawkish Fed but Ease Recession Fears

Network updates took a back seat for another session, with US economic indicators providing direction.

September ADP nonfarm and ISM Non-Manufacturing PMI numbers tested investor sentiment. While the numbers raised the chances of a 75-basis point Fed rate hike, the stats also eased investor fears of a US economic recession.

The ISM Non-Manufacturing PMI slipped from 56.9 to 56.7, reflecting robust service sector growth. Notably, the ISM Non-Manufacturing Employment sub-index increased from 50.2 to 53.0, with new orders rising at a solid clip.

ADP numbers also painted a positive picture, with nonfarm employment up 208k. In August, nonfarm employment increased by 185k.

While the US economic indicators were the key drivers, news of MuesliSwap going live was ADA positive. The MuesliSwap team made the announcement,

“We have officially launched Plutus v2 contracts and Liquidity Pools, making us the first DEX on #Cardano with both Orderbook and AMM trading.”

While the MuesliSwap news was good news, investors await the Input Output HK weekly update, with project numbers likely to be the focal point.

ADA Price Action

This morning, ADA was up 0.93% to $0.435. A bullish start to the day saw ADA rise from an early low of $0.431 to a high of $0.437 before easing back.

This morning, the First Major Resistance Level (R1) at $0.437 limited the upside.

Technical Indicators

ADA has to avoid a fall through the $0.431 pivot to retarget the First Major Resistance Level (R1) at $0.437. US economic indicators and central bank chatter would have to be crypto-friendly to support another bullish session.

In the case of a breakout session, the Second Major Resistance Level (R2) at $0.443 and $0.445 would likely come into view. The Third Major Resistance Level (R3) sits at $0.457.

A fall through the pivot would bring the First Major Support Level (S1) at $0.424 into play. However, barring an extended sell-off, ADA should avoid sub-$0.420 and the Second Major Support Level at $0.418. The Third Major Support Level (S3) sits at $0.405.

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

ADA sat below the 100-day, currently at $0.442. The 50-day EMA flattened on the 100-day EMA, while the 100-day EMA eased back from the 200-day EMAs, delivering mixed signals.

An ADA move through R1 ($0.437) would give the bulls a run at the 100-day EMA ($0.442) and R2 ($0.444). The 200-day EMA sits at $0.455. However, a fall through the 50-day EMA ($0.434) would bring S1 ($0.424) and sub-$0.420 into play.