Stablecoin news will appear at $0.340

the main ideas:

  • On Friday, Cardano (ADA) rose 0.31%, marking its fourth gain in eleven sessions.
  • Quiet Friday session Investors had their say on the latest news from the Cardano network.
  • Technical indicators remained bearish, with the ADA holding below the 50-day EMA, leaving $0.300 in sight.

On Friday, ADA was up 0.31%. Partially reversing a loss of 2.11% from Thursday, ADA ended the day at $0.326. Notably, ADA dropped below $0.340 for the second time since the FTX crash.

Tracking the broader crypto market, ADA rose to a morning high of $0.332. Failing to reach the first major resistance level (R1) at $0.340, ADA dropped to a low of $0.320 in the afternoon. However, after avoiding the first major support level (S1) at $0.305, ADA found late support to end the session at $0.326.

Stablecoin news provides support

On Friday came the news that Cardano is planning to launch a stablecoin backed by the US dollar.

Emurgo, the trading arm of Cardano, announced the planned launch on Twitter, Such asAnd the

EMRUGO, the official trading arm and founding entity of the Cardano blockchain, has announced the planned launch of a new USD-backed stablecoin, USDA. The first fully fiat-backed, rule-compliant stablecoin in the Cardano ecosystem.”

Emurgo continued with SayAnd the

“EMURGO has partnered with a US-based regulated financial services firm to hold cash deposits, ensuring that the stablecoin is fully compliant and follows regulatory guidelines.”

In the @EMURGO thread addedAnd the

“Backed by ‘real’ assets, the USDA provides strong long-term price stability that could ultimately unlock more reliable financial services for the Cardano ecosystem.”

Stablecoins have been in the crossfire since the collapse of Terra Labs, leaving the door open for new stablecoin initiatives.

ADA price action

This morning, ADA is up 0.31%, at $0.325. A mixed morning saw ADA drop to an early low of $0.322 before stabilizing.

ADAUSD 191122 daily chart

Technical indicators

ADA needs to break the $0.326 pivot to target the first major resistance level (R1) at $0.332 and Friday’s high at $0.332. Returning to $0.335 will support a bullish session. But ADA would also need support from the broader crypto market to exit R1.

In case of an extended rally, the second major resistance level (R2) at $0.338 and $0.40 will come into play. The third major resistance level (R3) is located at $0.350.

Failure to move through the pivot left the first major support level (S1) at $0.320. However, barring a contagion-driven sell-off, ADA should avoid below $0.315 and the second major support level (S2) at $0.314.

The third major support level (S3) is located at $0.302.

ADAUSD 191122 hourly chart

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

ADA has been below 50 days and is currently at $0.338. 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 ($0.332) would give the bulls a run at the 50-day moving average ($0.338) and R2 ($0.338). However, failure to break above the 50 day EMA would leave ADA under pressure and below $0.300 in sight.

ADAUSD 191122 4-hour chart

Stablecoin news will show $0.340 – Coinphony [SV]

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