the main ideas:
- ADA joined the broader cryptocurrency in negative territory on Sunday.
- News of unusual account activity on Binance and federal concerns left ADA below $0.310 for the first time since November.
- Technical indicators remain bearish, which indicates a possible return below $0.300.
And on Sunday, ADA was down 1.92%. Reversing its 0.32% gain from Saturday, ADA ended the week down 4.66% at $0.0.307. Notably, the ADA last closed the day below $0.310 on November 29.
After a mixed start to the day, ADA rose to an early evening high of $0.315. After reaching the first major resistance level (R1) at $0.315, ADA dropped to a late low of $0.305. ADA broke the first major support level (S1) at $0.311 and the second major support level (S2) at $0.309. The third major support level at $0.305 provided support.
Binance account activity and Fed fear left ADA below $0.310
Network chatter took a back seat on Sunday, with bearish cryptocurrency market sentiment spilling over into Sunday’s session. Investor concerns about the Federal Reserve’s monetary policy tested buyer’s appetite. After Friday’s wholesale inflation figures, market focus shifted to the US CPI report over the weekend.
With the report released on Tuesday and the Fed releasing its interest rate decision on Wednesday, Tuesday’s inflation numbers could weigh on the Fed and dampen hopes that the Fed will be pivotal in December.
However, the news of unusual account activity on the Binance exchange carried more weight. Investors found little solace in Binance Announces Account activity is market behavior only. In the wake of the FTX crash, investor confidence has become a concern, and Binance may need to provide more details to ease market pressure.
Today, there are no US economic indicators that provide direction. The lack of statistics will leave the ADA in the hands of Binance updates and the NASDAQ Composite Index.
We expect Input Output HK (IOHK) updates and any comments from Charles Hoskinson to continue to take a backseat.
ADA price action
This morning, ADA is down 1.30%, at $0.303. A bearish start to the day saw ADA drop from an early morning high of $0.308 to a low of $0.301.
ADA fell through the first major support level at $0.303 before finding support.
ADA needs to break the $0.309 pivot to target the first major resistance level (R1) at $0.313 and Sunday’s high at $0.315. A return to $0.310 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 $0.319 and $0.320. The third major resistance level (R3) is located at $0.329.
Failure to move through the pivot could support a decline through the first major support level (S1) at $0.303 to kick-start the second major support level (S2) at $0.299. However, barring risk-driven selling, ADA should avoid below $0.295 and the third key support level (S3) at $0.289.
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 moving average, currently at $0.313. The 50-day EMA is retracing the 100-day EMA, with the 100-day EMA retracing the 200-day EMA, giving bearish signals.
A breakout of the 50-day moving average ($0.313) and R1 ($0.313) would support a run through the 100-day moving average ($0.317) and R2 ($0.319). However, if it fails to break above the 50-day moving average ($0.313), ADA will be under pressure.
Minor Bears Target – $0.300 in Monday Sell – Coinphony [SV]