Bulls revisit $0.250 or face a new low in 2022

the main ideas:

  • ADA rose 0.82% on Friday to end the day at $0.246.
  • Cardano network updates and NFT stats provided a popular session.
  • However, technical indicators remain bearish, indicating a possible return below $0.240.

ADA rose 0.82% on Friday. Partially reversing the 1.61% loss from Thursday, ADA ended the day at $0.246. Notably, ADA ended a three-day losing streak while falling to a 2022 low of $0.239.

A bearish start for the day saw ADA drop to a fresh 2022 low of $0.239. After finding support at the first key support level (S1) at $0.240, ADA rose to a late high of $0.246. However, failing to reach the first major resistance level (S0.248), ADA dropped back to $0.244 before ending the day at $0.246.

NFT stats and network updates are provided with the support of ADA pricing

Friday’s session was quiet, with no Input Output HK network updates for investors to consider. The lack of statistics left the ADA in the hands of the broader crypto market during the morning session.

However, the latest Cardano-NFT stats have provided much-needed support. According to Opencnft, Cardano-NFT trading volume hit a December high of 1,761,388 ADA on Friday. While well below its October ATH of 4,271,973 ADA, NFT trading volumes rebounded during December.

NFT’s 311222

Development activity figures were also positive on Friday. According to Santiment, Cardano leads the way in rate of development activity while it ranks sixth in terms of return on investment (ROI).

However, the expected influx of projects after Vasil’s hard fork has yet to materialize, putting ADA under pressure.

Today, the lack of network updates is likely to leave ADA in the hands of the broader crypto market.

ADA price action

This morning, ADA is down 0.41%, at $0.245. A bearish start to the day saw ADA drop from an early high of $0.246 to a low of $0.245.

ADAUSD 311222 daily chart

Technical indicators

ADA needs to avoid a drop through the $0.244 pivot to target the first major resistance level (R1) at $0.248. A move through Friday’s high of $0.246 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 $0.251. The third major resistance level (R3) is located at $0.258.

A fall through the pivot would activate the first major support level (S1) at $0.241. Barring further selling, ADA should avoid below $0.235. The second major support level (S2) at $0.237 would define the downside. The third major support level (S3) is located at $0.230.

ADAUSD 311222 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 $0.254. 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 ($0.248) would support a run at R2 ($0.251) and the 50-day moving average ($0.254). A break of the 50-day EMA would send a bullish signal. However, if it does not break the 50 day EMA (0.254), then below $0.240 will be visible.

ADAUSD 311222 4-hour chart

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