Cardano bulls want to target $0.280 on the momentum

the main ideas:

  • ADA rose 0.37% on Thursday, bucking the broader trend in the cryptocurrency market.
  • The change in sentiment towards the Cardano network continued to provide support. However, US economic indicators and a bearish Nasdaq index covered the upside.
  • The technical indicators are bullish, which indicates a possible return to the $0.300 level.

ADA rose 0.37% on Thursday. After rising 5.93% on Wednesday, ADA ended the day at $0.269. Notably, ADA revisited $0.270 for the second time since December 18th.

A mixed start to the day saw ADA climb to a mid-morning high of $0.271. Failing to reach the first major resistance level (R1) at $0.275, ADA fell to the morning low of $0.263. However, avoiding the first major support level (S1) at $0.257, ADA returned to $0.270 before retreating.

The Hong Kong IO and Cardano stats updates offset the bearish Nasdaq

On Thursday, Input Output HK (IOHK) published a series of network updates providing additional price support.

iohk available the following statistics,

  • 11,000 members of IOG’s Discord tech community.
  • 18,000 subscribers to the IOG Development Digest.
  • Over 1,100 projects are underway at Cardano.
  • 3.7 million wallets on the Cardano blockchain.
  • 3,200 groups of contributors support the consensus mechanism.
  • Cardano’s sub-forum has over 696,000 members.

The latest update follows a change in sentiment at the turn of the year, supported by Cardano-NFT trading volumes, an upward trend in total ADA value locked, and increased Cardano usage.

Although the stats are positive for price, sentiment towards the launch of two algorithmic stablecoins continues to shift investor sentiment toward demand, with investors anticipating an influx of projects into the Cardano network positively as well.

Today, US economic indicators and the NASDAQ are likely to influence, with the focus on the very important US jobs report. But the network’s positive news may offset the bullish US stats.

ADA price action

This morning, ADA is up 1.49%, at $0.273. A bullish start to the day saw ADA rise from an early low of $0.269 to a high of $0.277. ADA broke through the first major resistance level (R1) at $0.272 and briefly through the second major resistance level (R2) at $0.276.

ADAUSD 060123 daily chart

Technical indicators

ADA needs to avoid falling through R1 and the $0.268 pivot to retarget the second major resistance level (R2) at $0.276. A return to $0.276 indicates an extended breakout session. But US economic indicators and network updates should be price friendly.

If the rally continues, the third major resistance level (R3) at $0.284 is likely to come into play.

A drop through R1 and the pivot would put the first major support level (S1) at $0.264. Barring risk selling, ADA should avoid below $0.260. The second major support level (S2) at $0.260 would define the downside. The third major support level (S3) is located at $0.252.

ADAUSD 060123 hourly chart

This morning, both the Exponential Moving Averages and the 4-hour candlestick chart (below) sent a bullish signal.

The ADA was above the 100-day moving average, currently at $0.261. The 50-day EMA closed at the 100-day EMA, and the 100-day EMA dropped below the 200-day EMA, giving bearish signals.

A move through the 200-day moving average ($0.276) and R2 ($0.276) would support a run at R3 ($0.284). However, a decline through S1 (0.264 USD) will make the 100-day moving average (0.261 USD) and S2 (0.260 USD). A drop through the 50 day EMA ($0.258) would send a bearish signal.

ADAUSD 060123 4-hour chart

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