the main ideas:
- On Sunday, Cardano (ADA) saw the red for the third day in a row to end the day at $0.419.
- The lack of updates from Input Output HK left the latest project numbers and bearish sentiments from the broader cryptocurrency market.
- The technical indicators are bearish, with it below $0.400.
On Sunday, the ADA was down 2.56%. After falling 1.15% on Saturday, ADA ended the week 6.26% lower at $0.419, the lowest daily closing price since July 12.
A mixed start to the day saw the ADA climb to an early high of $0.433. Failing to reach the first major resistance level (R1) at $0.435, ADA declined to a late low of $0.418.
ADA has breached the first major support level (S1) at $0.427 and the second major support level (S2) at $0.423. Notably, the ADA fell during the August low of $0.424 to below $0.420.
Crypto market forces send ADA below $0.420
Market sentiment against the Fed and economic expectations weighed on the ADA and the broader crypto market. ADA joined the crypto market with a third consecutive daily loss on Sunday.
But while bearish sentiment took its toll from across the market, a lack of network news updates contributed to a return below $0.420. Investors are looking for a significant increase in projects on the Cardano network to support the ADA price breakout.
According to Input Output HK, the number of projects launched on Cardano increased by just one to 100 in the week ending September 30. In addition, 1,113 projects are being built in Cardano, a modest increase of six over the previous week.
Charles Hoskinson, founder of Cardano, has talked about hundreds of projects considering the Cardano network after the hard split of the main network. The increase in projects will need to materialize to reverse the current downtrend.
ADA price action
This morning, the ADA rose 0.95% to $0.423. A mixed start to the day saw the ADA drop to a new September low of $0.416 before rising to $0.424.
ADA needs to avoid falling across the $0.423 pivot to target the first major resistance (R1) at $0.429 and Sunday’s high at $0.433. A noticeable change in investor sentiment will be needed to support a return to $0.430.
In the event of the breakout session, the second major resistance level (R2) is likely to appear at $0.438 and $0.440. The third major resistance level (R3) is located at $0.453.
A fall through the pivot will trigger the first major support level (S1) at $0.414. However, except for an extended sell off, ADA should avoid below $0.400. Another major support level at $0.408 would define the downside. The third major support level (S3) is located at $0.393.
This morning, the exponential moving averages and the 4 hour candlestick chart (below) both sent a bearish signal.
The ADA was below 50 days, and is currently at $0.438. The 50-day EMA pulled back from the 100-day moving average, with the 100-day moving average slipping from the 200-day moving average, giving bearish signals.
A move through R1 ($0.429) will give the bulls a run at R2 ($0.438) and the 50-day moving average ($0.438). The 200-day moving average is $0.460. However, a failure to break above the 50-day moving average will put the ADA under pressure.
Bears Target Sub- $0.410 on Low Project Numbers – Coinphony [SV]