ADA Price Forecast – Bears continue to target October low at $0.350

the main ideas:

  • On Saturday, Cardano (ADA) fell 0.82%, extending its losing streak to six sessions.
  • Negative sentiment from the broader cryptocurrency market and the latest Input Output HK numbers have left ADA in the red.
  • Technical indicators remain bearish, with the ADA below the 50-day EMA breaking out below $0.30 in play.

On Saturday, the ADA was down 0.82%. After a 2.65% drop on Friday, ADA ended the day at $0.364. It is worth noting that ADA ended the session below $0.40 for the fifth consecutive session and the fifth time since January 2021. ADA also extended its losing streak to six sessions.

A bullish start to the day saw the ADA climb to an early morning high of $0.370. However, failing to reach the first major resistance level (R1) at $0.384, ADA declined to a late low at $0.361. Avoiding the first major support level (S1) at $0.356, ADA closed the session at $0.364.

The Fed’s concerns and the latest Input Output HK (IOHK) weekly update continued to provide ADA price pressure.

Federal fear and network updates bring sixth consecutive daily loss

The cryptocurrency market fell for the second consecutive session and for the eighth time in eleven sessions on Saturday. US economic indicators and market bets for a 75 basis point Fed rate hike in November and December weighed on riskier assets.

Hong Kong I/O updates added further downward pressure on ADA price.

On Friday, enter the output of HK subscriber Weekly Development Report from 14 October. Highlights on the web from the weekly development report including,

  • 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.

Since the hard fork, weekly updates have failed to impress, contributing to the drop to the October low of $0.350 on October 13. In September, Cardano founder Hoskinson spoke of hundreds of projects examining the Cardano network after the major network hard split.

ADA price action

This morning, the ADA rose 0.55% to $0.366. A bullish start to the day saw ADA rally from an early low of $0.364 to $0.368 before reversing.

ADAUSD 161022 Daily Chart

Technical Indicators

ADA needs to avoid the $0.365 pivot to re-target the first major resistance level (R1) at $0.369. However, after IOHK’s latest weekly update, ADA will need broader market support to break out of the morning high at $0.368.

In the event of the breakout session, ADA is likely to test the second major resistance (R2) at $0.374 and the resistance at $0.380. The third major resistance level (R3) is located at $0.383.

A fall through the pivot will trigger the first major support level (S1) at $0.360. In the event of another extended sell-off, the second major support at $0.356 and the support at $0.350 should define the downside. The third major support level (S3) is located at $0.347.

ADAUSD 161022 hourly chart

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 $0.390. 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 the key resistance levels would give the bulls a run at the 50-day EMA ($0.390). The 200-day moving average is $0.429. However, a failure to break above the 50-day EMA ($0.390) would put ADA under pressure.

ADAUSD 161022 4-hour chart

ADA Price Prediction – Bears Continue Targeting October Low at $0.350 – Coinphony [SV]

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