Bears are targeting below $0.310 amid Fed concerns

the main ideas:

  • ADA joined the broader cryptocurrency in positive territory on Saturday, rising 0.32% to end the day at $0.313.
  • Fed concerns tested buyer appetite ahead of Tuesday’s US CPI report and Fed rate decision, leaving the ADA in a narrow range on Saturday.
  • Technical indicators remain bearish, which indicates a possible return below $0.300.

On Saturday, ADA was up 0.32%. Partially reversing the 0.95% loss from Friday, ADA ended the day at $0.313. Notably, ADA avoided below $0.310 for the first time in four sessions.

A bearish morning saw ADA drop to an early low of $0.311. Avoiding the first major support level (S1) at $0.308, ADA rose to a mid-afternoon high of $0.315. However, it failed to reach the first major resistance level (R1) at $0.316, ADA dropped back to $0.312 before ending the day at $0.313.

Fed Fear leaves the ADA in a limited scope session

On Saturday, there were no external forces to influence the market, leaving investors to consider the latest US economic indicators and the upcoming Fed interest rate decision. While ADA found support on Saturday, price action is likely to be in the hands of the US economic calendar and the Federal Reserve this week.

On Tuesday, the US CPI report may determine the outcome of Wednesday’s FOMC policy meeting. An unexpected rise in inflation in the US would weigh on the ADA, the broader crypto market, and the NASDAQ Composite Index.

However, you should monitor the Input Output HK (IOHK) network updates. News of successful project launches will provide support for ADA prices as investors look for an influx of new projects.

There have been no IOHK updates, but its founder, Charles Hoskinson subscriber A Tweet on Solana (SOL) talks about Solana turning into a side chain for Cardano. However, SOL showed a muted response to talk, falling 0.15% on Saturday.

ADA price action

This morning, ADA is up 0.32%, at $0.314. A bullish start to the day saw ADA rise from an early morning low of $0.312 to a high of $0.314.

ADAUSD 111222 daily chart

Technical indicators

ADA needs to avoid the $0.313 pivot to target the first major resistance level (R1) at $0.315 and Saturday’s high at $0.315. A return to $0.315 indicates a bullish session. But the ADA will need the broader market to support the afternoon session.

In the case of an extended rally, the bulls are likely to rush at the second major resistance level (R2) at $0.317 and $0.320. The third major resistance level (R3) is located at $0.321.

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 this week’s low of $0.307. The second major support level (S2) at $0.309 would define the downside. The third major support level (S3) is located at $0.305.

ADAUSD 111222 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 50-day EMA, currently at $0.315. The 50-day EMA has regressed from the 100-day EMA, with the 100-day EMA retracing the 200-day EMA, providing bearish signals.

A break of the 50-day EMA ($0.315) and R1 ($0.315) would support runs at R2 ($0.317) and 100-days ($0.318). However, failure to clear the 50 day EMA ($0.315) will see S1 ($0.311) and sub-$0.310 visible.

ADAUSD 111222 4-hour chart

Bears target below $0.310 on Fed fear – Coinphony [SV]

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