the main ideas:
- ADA fell by 4.89% on Monday to end the day below $0.255.
- Risk aversion, stemming from Fed optimism and recession fears, sent the Nasdaq and ADA back into the red.
- Technical indicators remain bearish, which indicates a possible return below $0.250.
And on Monday, ADA was down 4.89%. After falling by 0.37% on Sunday, ADA ended the day at $0.253. Notably, ADA ended the day below $0.255 for the first time since January 2021.
Tracking the broader crypto market, ADA rose to an early high of $0.269. After reaching the first major resistance level (R1) at $0.270, ADA dropped to a late low of $0.249. ADA fell through key support levels to a fresh 2022 low before moving through the third key support level (S3) at $0.251 to end the day at $0.253.
ADA slides to a new low in 2022 amid recession fears
It was a quiet start to the week, with no cryptocurrency events or IOHK updates.
The lack of ADA updates left it in the hands of the broader crypto market and the NASDAQ index. Fed worries and growing concerns about a hard landing and a prolonged US recession weighed heavily on riskier assets.
The Nasdaq fell by 1.49%, sending the cryptocurrency market cap down 2.09%, to $752.56 billion.
However, investor sentiment has improved this morning, as retreating buyers returned to the market. The bullish start to the day came despite a 136-point drop in the Nasdaq Mini, which puts the cryptocurrency market at risk of reversing.
This morning, the big news was the Bank of Japan’s announcement of changing the target range for the 10-year yield to 50 basis points, which sent Asian stock markets and the Nasdaq mini index lower. Previously, the 10-year yield range was within 25 basis points of its 0% target.
ADA price action
This morning, ADA is up 1.19%, at $0.256. A mixed start to the day saw ADA drop to an early low of $0.251 before rising to a high of $0.258.
ADA needs a break of the $0.257 pivot to target the first major resistance level (R1) at $0.265 and Monday’s high at $0.269. A return to $0.260 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 $0.277 and $0.280. The third major resistance level (R3) is located at $0.297.
If it fails to move through the pivot, the first major support level (S1) leaves $0.245 in play. Barring another risk-driven sell-off, ADA should avoid below $0.240 and the second major support level (S2) at $0.237. The third major support level (S3) is located at $0.217.
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 $0.281. The 50-day EMA is retracing the 100-day EMA, with the 100-day EMA retracing the 200-day EMA, giving bearish signals.
A move through R1 ($0.265) would support a run at R2 ($0.277) and the 50-day EMA ($0.281). Failure to breach the 50-day moving average (0.281) would put ADA under pressure.
Bulls Target $0.265 On Low Buyer Support – Coinphony [SV]