ADA Price Prediction: No FTX Exposure Limits ADA Downside at $0.300

Key Insights:

• On Thursday, cardano (ADA) jumped by 16.09% to reverse a 14.78% Wednesday sell-off.
• Hopes of an FTX bailout, the US CPI report, and news of Cardano having no exposure to FTX delivered support.
• However, the technical indicators remained bearish, with ADA sitting below the 50-day EMA, leaving $0.300 in view.

On Thursday, ADA rallied by 16.09%. Reversing a 14.78% slide from Wednesday, ADA ended the day at $0.368. Notably, ADA wrapped up the day at sub-$0.400 for the third consecutive session.

A mixed morning saw ADA fall to an early low of $0.311. Steering clear of Wednesday’s 2022 low and the First Major Support Level (S1) at $0.293, ADA rallied to a late high of $0.378. ADA broke through the First Major Resistance Level (R1) at $0.359 to end the day at $0.368.

On Thursday, news of Tron’s Justin Sun working on an FTX solution delivered early support. US economic indicators also influenced price action despite the disrupted market conditions.

ADA jumped from $0.361 to a day high of $0.378 in response to softer inflation figures that refueled bets of a December Fed pivot.

Input Output HK Updates To Play Second Fiddle to FTX and Contagion

Later today, Input Output HK (IOHK) will release the Cardano Weekly Development statistics. Since the Vasil hard fork, the upward trend in project numbers has been lackluster.

However, ADA continues to find price support on the expectation of a pickup in projects.

This week, ADA visited $0.310, its lowest level since January 2021. Significantly, ADA avoided a return to sub-$0.300 for the first time since January 27, 2021.

Founder Charles Hoskinson provided assurances that Cardano has no FTX exposure that cushioned the downside while other top ten members saw heavier losses. While the ADA cannot avoid the effects of the market malaise, a ramp-up of projects on the Cardano network would support a sharp breakout once market conditions improve.

Therefore, the IOHK update may not have a material price impact over the near term. Positive stats would continue to cushion the downside, however.

ADA Price Action

This morning, ADA was down 1.90% to $0.361. A mixed start to the day saw ADA rise to an early high of $0.373 before falling to a low of $0.355.

Technical Indicators

ADA needs to avoid the $0.352 pivot to target the First Major Resistance Level (R1) at $0.394. A move through the Thursday high of $0.378 would signal a possible breakout.

However, ADA would also need the support of the broader market for a sustained rebound. FTX and contagion news will remain key drivers.

In case of an extended rally, the bulls would likely take a run at $0.410 but fall short of the Second Major Resistance Level (R2) at $0.419. The Third Major Resistance Level (R3) sits at $0.486.

A fall through the pivot would bring the First Major Support Level (S1) at $0.327 into play. However, barring another extended sell-off, ADA should avoid sub-$0.300 and the Second Major Support Level (S2) at $0.285.

The Third Major Support Level (S3) sits at $0.218.

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

ADA sat below the 50-day, currently at $0.382. 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 ($0.382) would support a breakout from the 100-day EMA ($0.388) to bring R1 ($0.394) and the 200-day EMA ($0.396) into play. However, a failure to move through the 50-day EMA ($0.382) would leave S1 ($0.327) in view.