the main ideas:
- Cardano (ADA) shares fell 2.11 percent on Thursday, recording its seventh defeat in ten sessions.
- Solana’s cloud freezes and stablecoin suspensions soured the mood.
- Technical indicators remained bearish, with the ADA holding below the 50-day EMA, leaving $0.300 in sight.
And on Thursday, ADA was down 2.11%. After losing 1.48% on Wednesday, ADA ended the day at $0.325. Notably, ADA dropped below $0.340 for the first time since the FTX crash.
Tracking the broader cryptocurrency market, ADA rose to an early morning high of $0.334. Failing to reach the first major resistance level (R1) at $0.343, ADA dropped to a low of $0.299 in the morning. ADA briefly fell through the first major support level (S1) at $0.323 and the second major support level (S2) at $0.313 before ending the day at $0.325.
On Thursday, stock exchange reports of support for USDT and the Solana-based USDC weighed on investor sentiment. Investor confidence has failed to recover since the FTX crash, as updates regarding the events leading up to the crash have raised concerns about other centralized crypto platforms.
Binance, ByBit, and OKX were among the exchanges that stopped deposits and withdrawals of the Solana-based stablecoin. However, Solana-based USDT suspension was removed by Binance later in the day, which provided some relief.
Contributing to the downward sentiment was the Fed’s hawkish talk easing bets on the Fed’s pivot in December. On Thursday, FOMC member Bullard noted that the Fed’s rate hikes had only a limited impact on inflation. The comments gave investors another factor to consider.
However, as ADA and the broader crypto market rebounded from the 2022 low of $0.299, investors found support this morning. Although infection remains a threat, market conditions have temporarily returned to normal.
Later today, the Input Output HK (IOHK) Weekly Development Update will affect. Investors will react positively to a jump in the Cardano Network project.
ADA price action
This morning, ADA is up 0.92%, at $0.328. A mixed morning saw ADA drop to an early low of $0.324 before rising to a high of $0.332.
ADA needs to avoid the pivot at $0.319 to target the first major resistance level (R1) at $0.340. A move through Thursday’s high of $0.334 would indicate a possible breakout. But ADA will also need support from the broader market and a positive weekly trend report for a sustained rally.
In case the rally continues, the second major resistance level (R2) at $0.354 will come into play. The third major resistance level (R3) is located at $0.389.
A fall through the pivot would put the first major support level (S1) at $0.305. However, barring a contagion-driven sell-off, ADA should avoid below $0.300 and the second major support level (S2) at $0.284.
The third major support level (S3) is located at $0.249.
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 $0.342. The 50-day EMA has retraced from the 100-day EMA, with the 100-day EMA retracing from the 200-day EMA, giving bearish signals.
A move through R1 ($0.340) and the 50-day EMA ($0.342) would trigger R2 ($0.354). However, failure to break above the 50 day EMA would leave ADA under pressure and below $0.300 in sight.
Not Revisiting $0.340 Leaves Sub – $0.300 In Play – Coinphony [SV]