the main ideas:
- On Wednesday, Cardano (ADA) took another big hit, dropping 3.31% to end the day at $0.35.
- Risk aversion has pushed the ADA to a new low in 2022 at $0.347, with weak network updates adding to the downward pressure.
- Technical indicators remain bearish, with the ADA below the 50-day EMA breaking out below $0.30 in play.
On Wednesday, the ADA was down 3.31%. After losing 2.95% on Tuesday, ADA ended the day at $0.350. Notably, the ADA dropped to a new 2022 low of $0.347 and ended the session below $0.40 for the ninth consecutive session.
Wednesday’s bearish session saw the ADA drop from an early high of $0.362 to a last hour low of $0.347. ADA declined through the first major support level (S1) at $0.355. However, after finding support at the second major support level (S2) at $0.347, ADA ended the day at $0.350.
There were no network updates to offer routing, leaving ADA in the hands of the broader crypto market.
Network Updates Leave ADA in the Hands of Crypto Investor
There were no updates on the net on Wednesday to move investor sentiment against the ADA. Input Output HK’s weekly development updates continue to frustrate after Vasil’s hard fork on September 22nd.
Recently, hopes for an influx of new projects have faded, leaving less than $0.300 in play.
On Tuesday, input HK (IOHK) came out. Failed to country support by providing an overview of Cardano’s three main network features, namely,
- Consensus Protocol: Ouroboros, the Cardano consensus protocol, establishes strict security safeguards.
- Staking experience: Offers fluid stabilization without staking or cutting.
- Environmental impact: low energy consumption.
We continue to see the need for a sharp increase in projects on the Cardano network to change the narrative.
ADA price action
This morning, ADA rose 0.29% to $0.351. A mixed start to the day saw ADA drop to an early low of $0.347 before climbing to a high of $0.351.
ADA needs to break above the $0.363 pivot to target the first major resistance (R1) at $0.359 and Wednesday’s high at $0.362. However, the bearish trend towards IOHK Network updates will leave price action in the hands of the broader crypto market.
In the event of the breakout session, ADA is likely to test the second major resistance level (R2) at $0.368 and $0.370. The third major resistance level (R3) is located at $0.383.
Failure to move across the pivot leaves the first major support level (S1) at $0.344. However, barring an extended sell-off, ADA should avoid below $0.340 and another major support level at $0.338. The third major support level (S3) is located at $0.323.
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 $0.374. The 50-day EMA pulled back 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 ($0.359) would give the bulls a run at R2 ($0.368) and the 50-day moving average ($0.374). The 200-day moving average is $0.415. However, a failure to break above the 50-day EMA ($0.374) will put ADA under pressure.