The bulls are targeting $0.255 after the early rebound

the main ideas:

  • ADA topped the top 10 on Sunday, rising 1.63% to end the day at $0.250.
  • The lack of network updates has left ADA in the hands of the broader cryptocurrency market and put back buyers looking for low-priced fruit.
  • However, technical indicators remain bearish, indicating a possible return below $0.240.

ADA rose 1.63% on Sunday. After a flat session on Saturday, ADA ended the day at $0.250. ADA avoided a losing session for the third day in a row.

Tracking the broader crypto market, ADA fell to a morning low of $0.243. After finding support at the first major support level (S1) at $0.243, ADA rebounded to end the day at the high of $0.250. Despite the bullish afternoon session, ADA ended below the first major resistance level (R1) at $0.251.

NFT Stats provides support for ADA prices

It was a quiet Sunday session, with no Input Output HK network updates for investors to consider. The lack of statistics has left the ADA in the hands of the broader crypto market and recent NFT trading volumes.

Despite the cryptocurrency trading volumes, the latest Cardano-NFT stats provided more support at the beginning of the year. According to Opencnft, Cardano-NFT trading volume hovered near the December high of 1,761,388 ADA on Sunday. While well below its October ATH of 4,271,973 ADA, NFT trading volumes settled at 1,542,055 ADA.

While NFT trading volumes provided price support, markets will be watching the flow of projects into the Cardano network to indicate a return to $0.300 and a bullish January.

This month will also see the launch of two algorithmic stablecoins on the Cardano network. However, cryptocurrency market conditions will likely dictate the effect of launches on price action in the short term.

With global financial markets closed today due to public holidays, it is unlikely that there will be any significant updates to provide guidance. The lack of updates will impact the broader crypto market throughout the session.

However, investors should keep an eye on cryptocurrency news for events that could move the dial.

ADA price action

This morning, ADA was unchanged at $0.250. A mixed start to the day saw ADA climb to an early high of $0.251 before falling to a low of $0.247.

ADAUSD 020123 daily chart

Technical indicators

ADA needs to avoid a drop through the $0.248 pivot to target the first major resistance level (R1) at $0.252. A move through Sunday’s high of $0.252 and R1 ($0.252) would indicate a bullish session. With that, the broader market may need support in the afternoon session.

In case the rally continues, the bulls are likely to take a run at the second major resistance level (R2) at $0.255. The third major resistance level (R3) is located at $0.262.

A fall through the pivot would put the first major support level (S1) at $0.245. Barring further selling, ADA should avoid below $0.240. The second major support level (S2) at $0.241 would define the downside. The third major support level (S3) is located at $0.234.

ADAUSD 020123 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 $0.251. The 50-day moving average has pulled back from the 100-day moving average, with the 100-day moving average pulling back from the 200-day moving average, giving bearish signals.

A breakout of the 50-day moving average ($0.251) and R1 ($0.252) will support a run at R2 ($0.255). A break of the 50-day EMA would send a bullish signal. However, failure to breach the 50-day moving average (0.251) will support another drop below $0.240.

ADAUSD 020123 4-hour chart

Bulls target $0.255 after early bounce – Coinphony [SV]

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