Network news leaves ADA at risk below $0.420

the main ideas:

  • On Wednesday, Cardano (ADA) fell 1.15% to end the session at $0.431.
  • US economic indicators weighed on the broader cryptocurrency market, with the ADA seeing the end of a two-day winning streak on the Fed’s hawkish bets.
  • Technical indicators remain bearish, with the ADA below the 50-day EMA breaking out below $0.40 in play.

On Wednesday, the ADA was down 1.15%. ADA partially reversed its 1.87% gain from Tuesday, ending the day at $0.431.

A mixed start to the day saw the ADA reach an early peak at $0.437. Failing to reach the first major resistance level (R1) at $0.441, ADA fell to an early afternoon low at $0.424. ADA fell through the first major support level (S1) at $0.428 before a partial recovery in the late afternoon to end the day at $0.431.

US economic indicators raise bets on a hawkish Fed but reduce recession fears

Network updates took a back seat to another session, as US economic indicators provided guidance.

The ADP non-farm PMI and ISM non-manufacturing PMI numbers for September tested investor confidence. And while the numbers increased the chances of the Federal Reserve raising interest rates by 75 basis points, the stats also eased investor fears of a recession in the US.

The ISM non-manufacturing PMI fell from 56.9 to 56.7, reflecting strong growth in the services sector. Notably, the ISM non-manufacturing employment sub-index rose from 50.2 to 53.0, with new orders rising at a steady clip.

The ADP numbers also painted a positive picture, with non-farm payrolls rising by 208K. In August, the number of non-farm payrolls increased by 185 thousand.

While the US economic indicators were the main driver, News From MuesliSwap Going live ADA was positive. The MuesliSwap team released the announcement,

“We have officially launched the Plutus v2 contracts and liquidity pools, making us the first DEX on #Cardano with both order history and AMM trading.”

While the news for MuesliSwap has been good, investors are waiting for the weekly Input Output HK update, as project numbers will likely be in focus.

ADA price action

This morning, the ADA rose 0.93% to $0.435. A bullish start to the day saw the ADA rally from an early low of $0.431 to a high of $0.437 before retreating.

This morning, the first major resistance level (R1) at $0.437 capped the upside.

ADAUSD 061022 Daily Chart

Technical Indicators

ADA needs to avoid falling through the $0.431 pivot to re-target the first major resistance level (R1) at $0.437. US economic indicators and central bank rhetoric should be crypto-friendly to support another bullish session.

In the event of the breakout session, the second major resistance level (R2) is likely to appear at $0.443 and $0.445. The third major resistance level (R3) is located at $0.457.

A fall through the pivot will trigger the first major support level (S1) at $0.424. However, barring an extended sell-off, ADA should avoid below $0.420 and another major support level at $0.418. The third major support level (S3) is located at $0.405.

ADAUSD 061022 hourly chart

This morning, the exponential moving averages and the 4 hour candlestick chart (below) both sent a bearish signal.

The ADA was below 100 days, and is currently at $0.442. The 50-day moving average settled at the 100-day moving average, while the 100-day moving average pulled back from the 200-day moving average, providing mixed signals.

ADA move through R1 ($0.437) should give the bulls a run at the 100-day moving average ($0.442) and R2 ($0.444). The 200-day moving average is $0.455. However, a drop across the 50-day EMA ($0.434) would bring in the S1 ($0.424) and the minor – $0.420.

ADAUSD 061022 4-hour chart

Network News Leaves ADA at Risk Below $0.420 – Coinphony [SV]

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