Bears should target $0.300 below the risk sentiment

the main ideas:

  • ADA fell by 1.91% to end the day at $1.91 on Wednesday.
  • News of Binance, regulatory scrutiny and the Federal Reserve left the ADA in negative territory for the session.
  • Technical indicators remain bearish, which indicates a possible return below $0.290.

On Wednesday, ADA was down 1.91%. Partially reversing the 2.28% gain from Tuesday, ADA ended the day at $0.308. Notably, ADA ended the day below $0.310 for the third time in four sessions.

A mixed morning saw ADA climb to an early high of $0.315. When ADA failed to reach the first major resistance level (R1) at $0.322, ADA fell to as low as $0.306. However, avoiding the first major support level (S1) at $0.302, ADA returned to $0.314 before reacting to the Fed’s policy decisions and economic outlook.

The Fed-led reversal saw ADA drop to a late low of $0.305 before ending the day at $0.308.

Binance news, regulatory talks, and Fed Weigh

Market news updates on Binance and regulatory talks weighed on ADA throughout the Wednesday session. Although Binance reported deposit returns, concerns about the current crypto landscape weighed on investor sentiment. US lawmakers added to the bearish sentiment. On Wednesday, the Senate Banking Committee held a hearing to discuss FTX’s decline.

Part of the hearing was the possibility of tougher regulatory action to prevent a repeat of FTX’s collapse. Some lawmakers have called for cryptocurrencies to be banned while talking about Binance‚Äôs ties to the Chinese government, which points to a difficult road ahead for the cryptocurrency industry.

Late in the US session, the Fed pushed back the market’s bid for recovery, with a 50 basis point rate hike weighing heavily on riskier assets.

There were no updates from Input Output HK (IOHK) to distract investors, leaving ADA in the hands of the broader market. An influx of projects into the Cardano network will provide price support.

ADA price action

This morning, ADA is down 1.30% to $0.304. A bearish morning saw ADA drop from the early $0.309 high to $0.301. ADA fell through the first major support level (S1) at $0.304 before stabilizing.

ADAUSD 151222 daily chart

Technical indicators

ADA needs to break the $0.309 pivot to target the first major resistance level (R1) at $0.314 and Wednesday’s high at $0.315. A return to $0.315 indicates a bullish session.

In case the rally continues, the bulls are likely to take a run at the second major resistance level (R2) at $0.319. The third major resistance level (R3) is located at $0.329.

Failure to move through the pivot leaves the first major support level (S1) at $0.304 in play. In case of risk-driven selling, the second major support level (S2) at $0.299 should cap the downside. The third major support level (S3) is located at $0.289.

ADAUSD 151222 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 $0.311. 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 in 50 days ($0.311) would trigger the R1 ($0.314) and the 100-day EMA ($0.314). However, if it fails to break above the 50-day moving average ($0.311), ADA will be under pressure. The 200-day moving average is at $0.325.

ADAUSD 151222 4-hour chart

Bears Target Below $0.300 on Risk Sentiment – Coinphony [SV]

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