Bulls should target Monday’s high of $0.416

the main ideas:

  • On Thursday, Cardano (ADA) rose 1.04% to end the day below $0.400 for the second consecutive session.
  • US economic indicators reversed the losses of the morning session.
  • Technical indicators are bullish, with ADA holding above the 200-day moving average to reach below $0.410 on the horizon.

On Thursday, the ADA was up 1.04%. Partially reversing the 3.74% drop from Wednesday, ADA ended the day at $0.390. Notably, the ADA ended the day below $0.400 for the second consecutive session.

A mixed start to the day saw ADA drop to an early low of $0.384. Avoiding the first major support level (S1) at $0.374, ADA rose to a mid-morning high at $0.399. Failing to reach the first major resistance level (R1) at $0.403, ADA fell back below $0.390 before receiving support from the US economic calendar.

Weaker-than-expected ISM non-manufacturing PMI and unit labor cost numbers provided support for ADA prices.

Network updates were also positive for the ADA ahead of the weekly progress report.

HK Input Output Network Updates Provide price support

On Thursday, Input Output HK (IOHK) introduced the latest network update, Such asAnd the

“OUT NOW: #Daedalus mainnet 5.1.1 just released.”

IOHK went on to say,

“This update increases the minimum free disk space required to run a fully synchronized Daedalus wallet from 2 GB to 4 GB.”

IOHK too most dangerous New Cryptographic Fundamentals arrive to “enable cross-secure #DApp development.”

Although recent network updates haven’t been as important as Vasil’s hard fork, network improvements and developments are still ADA positive.

Later in the day, IOHK will release a weekly development update with project numbers of interest. However, the US jobs report may cast a shadow over the update. A sharp increase in non-farm payrolls will favor bets for a further 75 basis point Fed rate hike in December, which should weigh on riskier assets.

ADA price action

This morning, the ADA rose by 3.33% to $0.403. A mixed start to the day saw ADA drop to an early low of $0.388 before rising to $0.404.

ADA has breached the first major resistance level (R1) at $0.398.

ADAUSD 041122 . Daily Chart

Technical Indicators

ADA needs to hold above R1 and the $0.391 pivot to re-target the second major resistance level (R2) at $0.406. A return to the morning high of $0.404 would indicate a potential breakout session. But the ADA will also need support from the broader market for a sustained rally.

The US jobs report should be crypto-friendly.

Should the rally continue, the bulls are likely to run into Monday’s high of $0.416. The third major resistance level (R3) is located at $0.421.

A decline through R1 and the pivot will place the first major support level (S1) at $0.383. However, barring another extended sell off, ADA should avoid below $0.380 and another major support level at $0.376. The third major support level (S3) is located at $0.361.

ADAUSD 041122 hourly chart

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

ADA was above 200 days, currently at $0.399. The 50-day EMA closed at the 200-day moving average, as the 100-day moving average fell to the 200-day moving average, giving bullish signals.

A wait above the 200-day EMA ($0.399) would support a breakout from R2 ($0.406) to show Monday’s high at $0.416. However, a dip through the 200-day moving average ($0.399) and R1 ($0.398) should give the bears a look at the 50-day moving average ($0.396).

ADAUSD 041122 4-H Chart

Bulls Target Monday’s High of $0.416 – Coinphony [SV]

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