The bulls will target $0.315 based on the weak US CPI report

the main ideas:

  • ADA ended the day flat on Monday, bucking the broader cryptocurrency market bullish trend.
  • The Binance news drove the ADA to a December low of $0.301 before the Nasdaq supported an afternoon recovery.
  • Technical indicators remain bearish, which indicates a possible return below $0.300.

On Monday, the ADA ended the day flat. After losing 1.92% on Sunday, ADA ended the day at $0.307. Notably, ADA ended the day below $0.310 for the second consecutive session.

A bearish start to the day saw ADA drop to an early low of $0.301. ADA fell through the first major support level (S1) at $0.303 before rising to a late high of $0.308. However, when ADA failed to reach the first major resistance level (R1) at $0.313, ADA fell to end the day at $0.307.

Binance and NASDAQ account activity leaves ADA flat

There were no network updates from the Input Output HK (IOHK) to provide ADA guidance during Monday’s session. The lack of updates has allowed the ADA to track the broader crypto market.

Reports of erratic account activity on the Binance exchange have sent ADA and the broader crypto market into the red. News of US authorities’ plans to charge Binance with financial crimes added to the bearish sentiment.

However, the Nasdaq offered support in the afternoon, with the ADA reversing losses from the morning session to end the day flat. Hopes of lower inflation rates in the US drove demand for riskier assets. Today’s US CPI report could determine the Fed’s short-term interest rate path.

While there were no updates to the network to stop subsidizing the Nasdaq, its founder Charles Hoskinson spoke about the SEC and what would happen if the SEC classified ADA as a security. Comments may have capped the upside late in the Monday session.

In an Ask Me Anything (AMA) session on YouTube, Hoskinson He said It would cost large sums in a drawn-out legal battle. With the SEC and CFTC classifying more cryptocurrencies as securities, the SEC v Ripple case could have significant implications.

During the same AMA hearing, Hoskinson said of the SEC v Ripple case,

“I’ve been hearing rumors that the Ripple issue will be settled on December 15th, and it could have dire consequences for the industry one way or another. But you know, keep moving forward. No matter what happens, it’s a decentralized ecosystem that you control.”

ADA price action

This morning, ADA is down 0.65% to $0.305. A bearish start to the day saw ADA drop from an early morning high of $0.307 to a low of $0.304.

ADAUSD 131222 daily chart

Technical indicators

ADA needs to break out of the $0.305 pivot to target the first major resistance level (R1) at $0.310. 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 $0.312 and $0.315. The third major resistance level (R3) is located at $0.319.

However, a fall through the pivot would trigger the first major support level (S1) at $0.303. In case of risk-driven selling, the second key support level (S2) at $0.299 should cap the downside. The third major support level (S3) is located at $0.291.

ADAUSD 131222 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 moving average, currently at $0.312. The 50-day EMA has slipped below the 100-day EMA, with the 100-day EMA declining from the 200-day EMA, giving bearish signals.

A move through R1 ($0.310) would give the bulls a run at the 50-day moving average ($0.312) and R2 ($0.312). However, failure to break above the 50-day moving average ($0.312) will put ADA under pressure.

ADAUSD 131222 4-hour chart

Bulls target $0.315 based on weak US CPI report – Coinphony [SV]

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