The bulls will target $0.260 on the back of improving sentiment

the main ideas:

  • ADA avoided the red for the fourth consecutive session on Monday, rising 1.60% to end the day at $0.254.
  • Cardano-NFT trading volumes and sentiment towards the Cardano ecosystem provided support on Monday.
  • However, technical indicators remain bearish, indicating a possible return below $0.245.

ADA rose 1.60%. After gaining 1.63% on Sunday, ADA ended the day at $0.254. Notably, ADA avoided a losing session for the fourth straight day.

Tracking the broader crypto market, ADA fell to an early morning low of $0.247. While avoiding the first major support level (S1) at $0.245, ADA rose to a mid-morning high of $0.256. ADA broke the first major resistance level (R1) at $0.252 and the second major resistance level (R2) at $0.254.

However, a pullback in the morning sent ADA down to an afternoon low of $0.252 before briefly breaching the second resistance barrier to return to $0.256. However, ADA was left late in the decline at $0.254.

NFT stats and Cardano network sentiment provide price support

Monday’s session was quiet, with no updates from Input Output HK Network to guide investors. The lack of network updates has investors pondering the latest Cardano-NFT trading volumes and TVL figures as they look forward to the imminent launch of an algorithmic stablecoin.

On January 2, NFT trading volumes reached a new 30-day high, supporting demand for ADA. Trading volume was 1,870,234 ADA on Monday. Although it was down from October’s ATH of 4,271,974, it was the highest volume since October.

Cardano NFT 030123

TVL stats were also positive for price, with the Total Value Locked (TVL) rising at the turn of the year. According to Defi Llama, the total value booked was $50.7 million as of this morning, up from $48.95 million on January 1st.

TVL 030123

Today, ADA will be in the hands of the broader crypto market and news related to the network. Peak NFT volumes and a further increase in the total value locked should support another bullish session.

ADA price action

This morning, ADA is down 0.39%, at $0.253. A bearish start to the day saw ADA drop from an early morning high of $0.254 to a low of $0.252.

ADAUSD 030123 daily chart

Technical indicators

ADA needs to avoid a drop through the $0.252 pivot to target the first major resistance level (R1) at $0.258. ADA’s move through Monday’s high of $0.256 indicates 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 $0.261. The third major resistance level (R3) is located at $0.270.

A fall through the pivot would put the first major support level (S1) at $0.249. Excluding the sell-off, ADA should avoid below $0.245 and the second major support level (S2) at $0.243. The third major support level (S3) is located at $0.234.

ADAUSD 030123 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 100-day moving average, currently at $0.260. The 50-day moving average has fallen to the 100-day moving average, while the 100-day moving average has pulled back from the 200-day moving average, providing mixed signals.

A move through R1 ($0.258) and the 100-day moving average ($0.260) would support a breakout from R2 ($0.261). However, a drop through the 50 day EMA (0.252) would give the bears a run at $0.245.

ADAUSD 030123 4-hour chart

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