The bulls are eyeing $0.330 on softer US inflation numbers

the main ideas:

  • On Wednesday, ADA rose 3.24% to end the day at $0.319.
  • News China plans to ease COVID-19 measures Fed Chairman Powell delivered the first bullish session.
  • But the ADA was under pressure this morning, as US inflation numbers likely derailed Powell’s pivotal speech.

On Wednesday, ADA rose 3.24%. After gaining 0.98% from Tuesday, ADA ended the day at $0.319.

A mixed start to the day saw ADA drop to an early morning low of $0.308. While avoiding the first major support level (S1) at $0.305, ADA rose to a late high of $0.321. ADA broke the first major resistance level (R1) at $0.324 and the second major resistance level (R2) at $0.316 to end the day at $0.319.

Fed Chair Powell and the Nasdaq Composite Index provide support for the ADA

On Wednesday, investor sentiment changed against the protests in China. Reports that the Chinese government was planning to ease lockdown measures on the morning supported the hack. However, concerns ahead of Fed Chair Powell’s speech and mixed US economic indicators led to a pullback before a late rally.

Fed Chair Powell has talked about easing the pace of rate hikes, which has fueled demand for riskier assets. The Nasdaq Composite Index rose 4.41%, as the cryptocurrency market ended the session 3.98% higher at $820.7 billion.

There were no network updates from Input Output HK or founder Charles Hoskinson to impress before tomorrow’s Weekly Development Update.

The lack of network updates will likely leave the ADA in the hands of the US economic calendar and the Nasdaq Composite Index today. Weak inflation numbers and subdued chatter from FOMC members should support another bullish session.

The NASDAQ mini index is down 34 points this morning.

ADA price action

This morning, ADA is down 0.31%, at $0.318. A bearish morning saw ADA drop from the early $0.320 high to $0.314 before stabilizing.

ADAUSD 011222 daily chart

Technical indicators

ADA needs to avoid the $0.316 pivot to retarget the first major resistance level (R1) at $0.324. A move through Wednesday’s high of $0.321 could indicate a breakout session. However, the ADA will need price-friendly US statistics, FOMC members’ chatter and IOHK updates to support a bullish session.

In case the rally continues, the second major resistance level (R2) at $0.329 and $0.335 is likely to come into play. The third major resistance level (R3) is located at $0.342.

A fall through the pivot would activate the first major support level (S1) at $0.311. However, barring a risk-driven sell-off, ADA should avoid below $0.305 and the second major support level (S2) at $0.303.

Rising US inflationary pressures could reverse bets on the Fed’s pivot which could see S2 ($0.303) on the horizon.

The third major support level (S3) is located at $0.290.

ADAUSD 011222 hourly chart

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

The ADA was below the 100-day moving average, currently at $0.323. The 50-day moving average has fallen to the 100-day moving average, while the 100-day moving average has pulled back from the 200-day moving average, providing mixed signals.

ADA breakout from the 100-day moving average ($0.323) and R1 ($0.324) will support a run at R2 ($0.329). However, a slip through the 50-day moving average ($0.314) would support a decline through S1 ($0.311) to show S2 ($0.304).

Bulls Eye $0.330 on Softer US Inflation Numbers – Coinphony [SV]

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