The bulls set $0.265 for a target of $0.270

the main ideas:

  • ADA traded up 1.17% on Friday, ending the session at $0.259.
  • US economic indicators, Nasdaq and Cardano network news provided support.
  • However, technical indicators remain bearish, indicating a possible drop below $0.245.

On Friday, ADA was up 1.17%. After gaining 1.19% from Thursday, ADA ended the day at $0.259. Notably, ADA ended the day below $0.260 for the fifth consecutive day.

A mixed start to the day saw ADA drop to an early low of $0.255. While avoiding the first major support level (S1) at $0.250, ADA rose to an early morning high of $0.264. ADA broke the first major resistance level (R1) at $0.260 and the second major resistance level (R2) at $0.263.

However, a pullback in the morning sent ADA down to an afternoon low of $0.256 before finding support to end the day at $0.259.

The ADA followed the NASDAQ on a choppy Thursday

There were no network updates from Input Output HK (IOHK) to provide routing on Friday. Because of the holiday, IOHK will release its next weekly development report on January 13th.

The lack of updates proved helpful, as investors and analysts scrutinized the year’s statistics.

After hitting a record high in October, Cardano-NFT trading volumes have resumed the upward trend from late November, providing price support.

Cardano NFT 241222

According to OpenCNFT, NFT volume increased to 1,614,033,081 ADA on December 23, compared to 793,562,555 ADA on November 24.

Smart contract updates have also been positive, and the number of Plutus scripts continues to grow. On December 16, the number of Plautus texts was 4,855 compared to 3,771 on November 24.

With NFT and smart contract stats mitigating the downsides, the imminent launch of an algorithmic stablecoin on the Cardano network should support a bullish start to 2023. There is also a Voltaire upgrade for investors to consider in addition to Hydra and Mithril.

After descending into 2022 which was Thursday, the second piece of Jigsaw will be an influx of new projects to the network after Vasil’s hard fork. The ADA may struggle to get out of its current ranges until there is an influx of projects.

For the next day, the lack of updates from IOHK and Charles Hoskinson will likely leave ADA in the hands of the broader crypto market.

ADA price action

This morning, ADA is up 0.39%, at $0.260. A bullish start to the day saw ADA rally from an early low of $0.259 to a high of $0.260.

ADAUSD daily chart 241222

Technical indicators

ADA needs to avoid the $0.259 pivot to target the first major resistance level (R1) at $0.264. Holding on the $0.260 handle might indicate 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 $0.277.

A fall through the pivot would trigger the first major support level (S1) at $0.255. Barring an event-driven sell-off, ADA should avoid going below $0.250. The second major support level (S2) should be at $0.250 to block the downside. The third major support level (S3) is located at $0.241.

ADAUSD 241222 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 EMA, currently at $0.266. The 50-day EMA has regressed from the 100-day EMA, with the 100-day EMA retracting from the 200-day EMA, providing bearish signals.

A move through R1 ($0.264) would support the run of the 50-day moving average ($0.266) and R2 ($0.268). If it fails to break the 50 day EMA ($0.266), then the ADA will be under pressure.

ADAUSD 241222 4-hour chart

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