the main ideas:
- On Friday, Cardano (ADA) rose 8.21% to end the day at $0.422.
- US economic indicators distracted investors from the weekly update of Input Output Network HK.
- Technical indicators are bullish, with ADA holding above the 50-day EMA, giving $0.450 in sight.
On Friday, the ADA was up 8.21%. After posting a 1.04% gain on Thursday, ADA ended the day at $0.422. Notably, the ADA ended the day at its highest level since October 9.
A mixed start to the day saw ADA drop to an early low of $0.388 before making any move. Avoiding the first major support level (S1) at $0.383, ADA rose to a late high at $0.426. ADA broke through the major resistance levels today to end the session at $0.422. The third major resistance level (R3) at $0.421 provided late support.
Market-friendly US economic indicators in cryptocurrencies provided a bullish Friday session.
Input Output HK’s network updates failed to make an impact, despite another disappointing set of project numbers.
HK Input Output Network Updates Disappoint
Friday, Input Output Hong Kong (IOHK) chest Weekly progress report. Key statistics included,
- 104 projects were launched in Cardano, an increase of one over the previous week.
- Cardano-based projects totaled 1,130, 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.
The latest figures will be another disappointment for investors who expect a sharp increase in projects after Vasil. However, optimism about a significant increase in projects later this year and early 2023 has limited the impact of the numbers on the ADA.
ADA price action
This morning, the ADA rose 1.90% to $0.430. A mixed start to the day saw ADA drop to an early low of $0.420 before climbing to a high of $0.435.
The first major resistance level (R1) at $0.436 capped the early upside.
Technical Indicators
ADA needs to hold above the $0.412 pivot to re-target the first major resistance level (R1) at $0.436. An avoidance of below $0.430 would indicate a potential breakout session. But the ADA will also need support from the broader market for a sustained rally.
If the rally continues, the bulls are likely to run at the second major resistance level (R2) at $0.450. The third major resistance level (R3) is located at $0.488.
A fall through the pivot would place the first major support level (S1) at $0.398. However, barring another extended sell off, ADA should avoid below $0.395 and another major support at $0.374. The third major support level (S3) is located at $0.336.
This morning, the exponential moving averages and the 4-hour candlestick chart (below) both sent a bullish signal.
ADA was above 50 days, currently at $0.401. The 50-day moving average crossed over the 200-day moving average, as the 100-day moving average fell to the 200-day moving average, giving bullish signals.
A hold above the 50-day EMA ($0.401) would support a breakout from R1 ($0.436) to show R2 ($0.450). However, a dip below the 50-day ($0.401) and 200-day ($0.400) moving averages would give the bears a look at the S1 ($0.398) and the 100-day ($0.395).