Bulls eye $0.420 on bullish grid sentiment

the main ideas:

  • On Friday, Cardano (ADA) rose 4.38% to end the session at $0.405.
  • Improved sentiment towards the Cardano grid and rising hopes around the Fed pivot in December lifted the session.
  • Technical indicators are bullish, with ADA holding above the 200-day moving average to make $0.45 visible.

On Friday, the ADA was up 4.38%. After reversing the 3.72% decline from Thursday, ADA ended the day at $0.405. Notably, the ADA closed the day at $0.400 for the third time in four sessions, avoiding less than $0.35 for the fifth consecutive day.

Tracking the broader market, ADA fell to the midday low of $0.378. Avoiding the first major support level (S1) at $0.376, ADA rose to a late high at $0.411. ADA broke out the first major resistance level (R1) at $0.409 before a late pullback to end the day at $0.405.

US economic indicators and corporate earnings provided a much-needed support after Thursday’s sharp drop. But investor sentiment toward the Cardano network, beyond the Vasil hard fork, also provided price support.

Input Output HK delivers development updates every week

Friday, HK Exit Entry (IOHK) chest Weekly development update after the October release of Cardano 360 on Thursday.

Key highlights include,

  • Work is underway on nuclear improvements.
  • A new version of Daedalus was released before production.
  • Marlowe Runtime is used to enforce Actus contracts.
  • New HydraV1 specifications updated.
  • Find9 awards are given to the ecosystem.

Looking at the stats,

  • 103 projects were launched in Cardano, unchanged from the previous week.
  • Cardano-based projects totaled 1,127, an increase of five 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.

While project numbers remained weak, investors expect activity on the Cardano network to increase. Last weekend, news that telemedicine platform Citaldoc had completed the first ADA transaction on its platform showed what the future holds for Cardano and ADA.

ADA price action

This morning, the ADA rose 0.25% to $0.406. A mixed start to the day saw ADA drop to an early low of $0.402 before rising to $0.406.

ADAUSD 291022 Daily Chart

Technical Indicators

ADA needs to avoid the pivot at $0.398 to target the first major resistance level (R1) at $0.418. A move through Friday’s high of $0.411 may indicate a potential breakout session. But the ADA will need support from the broader market for a bullish session.

If the rally continues, the second major resistance level (R2) at $0.431 is likely to come into play. The third major resistance level (R3) is located at $0.464.

A fall through the pivot would place the first major support level (S1) at $0.385. However, barring an extended sell-off, ADA should avoid below $0.380 and another major support level at $0.365. The third major support level (S3) is located at $0.332.

ADAUSD 291022 hourly chart

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

The ADA was above 200 days, and is currently at $0.398. The 50-day EMA converged to the 100-day EMA, with the 50-day and 100-day moving averages dropping to the 200-day moving average, giving bullish signals.

A bullish crossover of the 50-day EMA to the 100-day moving average would signal a move through R1 ($0.418) to target R2 ($0.431). However, a drop across the 200-day EMA ($0.398), however, would bring in the S1 ($0.385), 50-day ($0.382) and 100-day ($0.382).

ADAUSD 291022 4-hour chart

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