the main ideas:
- ADA rose 2.37% on Tuesday. Despite the bullish session, the ADA ended the day below 0.260 for the second consecutive session.
- Risk sentiment turned bullish on Tuesday, as Visa and Binance.US provided price support.
- However, technical indicators remain bearish, indicating a possible return below $0.250.
On Tuesday, ADA was up 2.37%. Partially reversing the 4.89% decline from Monday, ADA ended the day at $0.259. Notably, ADA ended the day below $0.260 for the second consecutive session.
A mixed start to the day saw ADA drop to an early low of $0.251. While avoiding the first major support level (S1) at $0.245, ADA rose to a mid-afternoon high of $0.262. However, ADA failed to reach the first major resistance level (R1) at $0.265, ending the day at $0.259.
Recession fears take a backseat to cryptocurrency market news
After a quiet start to the week, the cryptocurrency market got a boost from cryptocurrency news on Tuesday.
Investor concerns about Binance’s liquidity crunch continued to subside, with news of Binance’s acquisition of Voyager Digital for $1.022 billion to prop up the broader crypto market.
Cryptocurrency adoption was also behind the bullish session, as Visa (V) plans to support Ethereum (ETH) automatic payments.
However, the upside was modest, with no updates on Input Output HK (IOHK) preventing a return to $0.265.
Today, investors will need to continue to monitor cryptocurrency news, as the FTX talks will likely have an impact. Except for IOHK network updates, the NASDAQ index will also provide guidance.
ADA price action
This morning, ADA is down 0.77% to $0.257. A bearish start to the day saw ADA drop from an early high of $0.259 to a low of $0.256.
ADA needs to break the $0.257 pivot to target the first major resistance level (R1) at $0.264. A return to $0.260 indicates a bullish session. But the ADA will need the broader market to support the afternoon session.
In case of an extended rally, the bulls are likely to take a run at the second major resistance level (R2) at $0.268 and $0.270. The third major resistance level (R3) is located at $0.279.
A fall through the pivot would trigger the first major support level (S1) at $0.253. Barring another risk-driven sell-off, ADA should avoid below $0.250 and the second major support level (S2) at $0.246. The third major support level (S3) is located at $0.235.
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 $0.277. 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 ($0.264) would support a run at R2 ($0.268) and the 50-day moving average ($0.277). Failure to breach the 50-day EMA (0.277) will put ADA under pressure.
Bears Stay in Control, Focusing on Below $0.250 – Coinphony [SV]