ADA Price Prediction: Return to $0.335 to Bring $0.350 into View

Key Insights:

• On Sunday, cardano (ADA) fell by 2.95%, marking the fifth loss from six sessions.
• FTX news and contagion fear continued to weigh despite the lack of Cardano exposure to FTX.
• The technical indicators remained bearish, with ADA sitting below the 50-day EMA, leaving $0.300 in view.

On Sunday, ADA fell by 2.95%. Following a 4.24% loss on Saturday, ADA ended the week down by 18.2% to $0.329. Notably, ADA wrapped up the day at sub-$0.400 for the fifth consecutive session while avoiding the November 9 low of $0.309.

A mixed morning saw ADA rise to an early high of $0.345. Coming up short of the First Major Resistance Level (R1) at $0.351, ADA slid to a late low of $0.325. ADA fell through the First Major Support Level (S1) at $0.332 to end the day at sub-$0.330.

FTX and Contagion Fear Leave ADA on the Backfoot

FTX news updates continued to weigh on ADA, with Input Output HK (IOHK) network updates failing to distract investors from the FTX collapse.

With FTX the hot topic amid calls for a bailout, Cardano founder Charles Hoskinson attended a Twitter Space forum on DeFi. Hoskinson shared his views on an FTX bailout, saying,

“Build real things that don’t have custodians… If we do a bailout, all we’re doing is basically saying: ‘Well, it’s OK, once we get rid of these criminals, the next wave of criminals will be far more honest and far better.”

Hoskinson also talked about Bitcoin and Cardano, saying,

“Guys, the protocols are fine, they’re still going to work exactly the same way tomorrow.”

On Friday, Input Output HK (IOHK) released the Cardano Weekly Development statistics.

According to the latest report,

• 104 projects launched on Cardano, unchanged from the previous week.
• Projects building on Cardano totaled 1,139, up by nine from the previous week.

Other stats included 54.1 million transactions, 6.7 million native tokens, and 64,739 token policies.

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.

While there was a pickup in the number of projects building on Cardano, the latest update was not enough to provide price support.

ADA Price Action

This morning, ADA was down 1.52% to $0.324. A mixed start to the day saw ADA rise to an early high of $0.334 before falling through the First Major Support Level (S1) at $0.321 to a low of $0.314.

Technical Indicators

ADA needs to move through the $0.333 pivot to target the First Major Resistance Level (R1) at $0.341 and the Sunday high of $0.345. A return to $0.335 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 the Second Major Resistance Level (R2) at $0.353. The Third Major Resistance Level (R3) sits at $0.373.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.321 in play. However, barring another extended sell-off, ADA should avoid sub-$0.300. The Second Major Support Level (S2) at $0.313 and support at $0.310 should limit the downside.

The Third Major Support Level (S3) sits at $0.293.

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

ADA sat below the 50-day, currently at $0.360. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.

A move through R1 ($0.341) would bring R2 ($0.353) and the 50-day EMA ($0.360) into play. However, failure to move through the 50-day EMA would leave ADA under pressure and bring sub-$0.320 support levels into view.