the main ideas:
- The ADA ended the day flat for a second session on Sunday.
- There were no updates to the Input Output HK (IOHK) or cryptographic events to support the holiday traffic.
- Technical indicators are still bearish, indicating a possible return below $0.255.
ADA ended the day unchanged at $0.259 for the second consecutive session on Sunday. Although flat, the ADA ended the week with a loss of 2.63%. Notably, ADA ended the day below $0.260 for the seventh consecutive day while avoiding the red zone for the fourth consecutive session.
A bullish start to the day saw ADA climb to an early morning high of $0.260. Failing to reach the first major resistance (R1) level at $0.261, ADA fell to as low as $0.255 in the afternoon. ADA fell through the first major support level (S1) at $0.257.
However, when ADA found support at the second major support level at $0.255, ADA returned to $0.260 before retreating.
Quiet leave session leaves ADA flat for session two
It was a quiet day, with no updates from Input Output HK (IOHK) to provide guidance. Over the holidays, the lack of updates left investors on the sidelines, leaving trading volumes at weekly lows before a late rebound.
Cardano-NFT volume has continued its downward trend from Friday’s 30-day high. But the decline was likely due to the holidays, which limited the impact on investor sentiment.
On Sunday, the volume was 778,923 ADA, down from $1,614,033,081 on Friday.
While there was no comment from Cardano founder Charles Hoskinson, Hoskinson did hosting Twitter private space. Any news about the project will attract the interest of investors.
For the next day, the lack of IOHK updates will probably result in a scoped session. However, investors should keep an eye on cryptocurrency news feeds for events that could move the dial.
ADA price action
This morning, ADA is up 0.39%, at $0.260. A hotter start to the day saw ADA drop to an early low of $0.257 before rising to a high of $0.262. ADA briefly broke the first major resistance level (R1) at $0.261.
ADA needs to avoid a drop through the $0.258 pivot to retarget the first key resistance level (R1) at $0.261 and the morning high at $0.262. A move through the morning high of $0.262 could signal a bullish session. But the ADA will need the broader market to support the afternoon session.
In case the rally continues, the bulls are likely to take a run at the second major resistance level (R2) at $0.263. The third major resistance level (R3) is located at $0.265.
A fall through the pivot would trigger the first major support level (S1) at $0.256. Barring an event-driven sell-off, ADA should avoid below $0.255 and the second major support level (S2) at $0.253. The third major support level (S3) is located at $0.248.
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 $0.263. The 50-day EMA has retraced from the 100-day EMA, with the 100-day EMA retracing from the 200-day EMA, giving bearish signals.
A move through R1 ($0.261) would support a run at R2 ($0.263) and the 50-day moving average ($0.263). However, in the event of a failure to breach the 50-day EMA ($0.263), ADA risks falling through S1 ($0.256).