The breakdown resistance at $0.345 remains the key

the main ideas:

  • On Tuesday, Cardano (ADA) rose 1.51%, marking its third gain in eight sessions.
  • The launch of the Binance Redemption Fund and US economic indicators provided support for the ADA.
  • However, technical indicators remained bearish, with the ADA holding below the 50-day EMA, leaving $0.300 in sight.

On Tuesday, ADA rose 1.51%. After gaining 0.91% from Monday, ADA ended the day at $0.337. Notably, ADA ended the day below $0.400 for the seventh consecutive session while avoiding the November 9 low of $0.309.

A mixed morning saw ADA drop to an early low of $0.329. While avoiding the first major support level (S1) at $0.317, ADA rose to an early afternoon high of $0.344. However, it failed to reach the first major resistance level (R1) at $0.345, ADA dropped back to $0.332 before ending the day at $0.337.

Hong Kong Limited Entry Updates departs from the scope of the ADA

Input-output HK (IOHK) updates have been few and far between, leaving ADA’s scope restricted in recent sessions. While hopes of a large influx of projects into the Cardano network continue to limit the downside, ADA failed to break a downtrend at daily highs.

The Total Value Closed (TVL) and NFT stats likely contributed to the current ADA price trends.

According to DeFiLlama, TVL was priced at $55.98 million this morning. While TVL is up 3.24% in 24 hours, TVL is down 21.5% since $71.27 million on November 6. However, the market capitalization has decreased by 19.71% over the same period. A capture at TVL would support a break from $0.350 below the level as cryptocurrency market conditions stabilize.

ADA TVL 161122

However, TVL’s move is in line with the broader market, which fell 21.77% to $43.76 billion over the same period.

NFT numbers also saw a downward trend, according to OpenCNFT, which also limited the upside.

ADA NFT 161122

Finally, the latest weekly development figures showed little movement in the number of projects on the Cardano network. Charles Hoskinson’s promise of an influx of projects to support an exit from the broader market trend must come true.

Until a change to the above occurs, price action is likely to remain in the hands of the broader crypto market. While infection concerns remain, US economic indicators and the Nasdaq Composite could provide guidance later today.

Retail sales numbers for October will attract interest. On Tuesday, the ADA responded to US wholesale inflation numbers that point to more orderly market conditions. However, the threat of another crypto market crash leaves downside risks in play.

ADA price action

This morning, ADA is up 1.78%, at $0.343. A bullish morning saw ADA rise from an early low of $0.336 to a high of $0.344. The first major resistance level (R1) at $0.344 extended the upside move.

ADAUSD 161122 daily chart

Technical indicators

ADA needs to avoid the $0.337 pivot to retarget the first major resistance level (R1) at $0.344 and Tuesday’s high at $0.344. A move through the first resistance barrier indicates a potential breakout. But ADA will also need support from the broader market for a sustained rally.

In the case of an extended rally, the second major resistance level (R2) will come in at $0.352. The third major resistance level (R3) is located at $0.367.

A fall through the pivot would activate the first major support level (S1) at $0.329. However, barring another extended sell-off, ADA should avoid below $0.325 and the second major support level (S2) at $0.322.

The third major support level (S3) is located at $0.307.

ADAUSD 161122 hourly chart

This morning, both the Exponential Moving Averages and the 4-hour candlestick chart (below) sent a bearish signal.

The ADA has been below 50 days and is currently at $0.351. The 50-day EMA is retracing the 100-day EMA, with the 100-day EMA retracing the 200-day EMA, giving bearish signals.

A move through R1 ($0.344) would trigger the 50-day exponential moving average ($0.351) and R2 ($0.352). However, failure to breach the 50-day EMA would see support levels below $0.330.

ADAUSD 161122 4-hour chart

Breakdown resistance at $0.345 remains key – Coinphony [SV]

Leave a Reply

Your email address will not be published. Required fields are marked *