the main ideas:
- On Thursday, Cardano (ADA) joined the broader crypto market in the red, dropping 2.65% to end the day at $0.367.
- Hong Kong I/O network updates and US economic indicators sent the ADA deep into the red.
- Technical indicators remain bearish, with ADA holding below the 50-day moving average to leave below $0.30.
On Friday, the ADA was down 2.65%. After a 1.05% drop from Thursday, ADA ended the day at $0.367. Notably, ADA ended the session below $0.40 for the fourth consecutive session, extending its losing streak to five sessions.
A bullish start to the day saw the ADA climb to an early morning high of $0.389. However, when ADA failed to reach the first major resistance level (R1) at $0.390, ADA fell to a late low at $0.361. Avoiding the first major support level (S1) at $0.357, ADA closed the session at $0.367.
US economic indicators and Input Output HK (IOHK) ADA network updates sent in the opposite direction during the second half of the day.
IOHK and Fed Fear updates bring the fifth daily defeat in a row
On Friday, enter the output of HK subscriber Weekly Development Report October 14th. After Vasil’s hard fork on September 22, markets have been anticipating an influx of projects yet to materialize. Post-fork updates were weak, which contributed to the ADA reversal from the top of the pre-Vasil hard fork in August at $0.595.
As of October 14, the network’s weekly development report included:
- Work is underway on nuclear improvements.
- Next Daedalus release to fix minimum fee calculation issue.
- 102 projects were launched in Cardano, unchanged from the previous week.
- 1,120 projects based on Cardano, an increase of three over the previous week.
Prior to Vasil’s hard fork, the number of projects launched on Cardano was 98, with 1,100 projects built on the Cardano network.
In September, Cardano founder Hoskinson spoke of hundreds of projects examining the Cardano network after the major network hard split. However, recent numbers have continued to dampen market expectations.
ADA price action
This morning, the ADA is down 0.27% to $0.366. A mixed start to the day saw ADA climb to an early high at $0.368 before dropping to a low of $0.365.
ADA needs to break above the $0.372 pivot to target the first major resistance level (R1) at $0.384. However, after IOHK’s latest weekly update, ADA will need broader market support to return to $0.380.
In the event of the breakout session, ADA is likely to test the second major resistance level (R2) at $0.400. The third major resistance level (R3) is located at $0.428.
Failure to move across the pivot leaves the first major support level (S1) at $0.356 in play. In the event of another extended sell-off, the second major support at $0.344 and the support at $0.340 should define the downside. The third major support level (S3) is located at $0.316.
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 $0.397. The 50-day EMA slipped from the 100-day moving average, with the 100-day moving average pulling back from the 200-day moving average, giving bearish signals.
A move through R1 ($0.384) will give the bulls a run at the 50-day moving average ($0.397) and R2 ($0.400). The 200-day moving average is $0.432. However, a failure to break above the 50-day EMA ($0.403) would put ADA under pressure.