the main ideas:
- On Thursday, ADA rose 3.68% to end the day at $0.338.
- Input Output HK (IOHK) network updates and news of a possible FTX restart supported the bullish session.
- Technical indicators are still bullish, which indicates a return to $0.400.
ADA rose 3.68% on Thursday. Partially reversing Wednesday’s 5.78% decline, ADA ended the day at $0.338. Notably, ADA fell below $0.350 for the first time in seven sessions.
A mixed start to the day saw ADA drop to an early low of $0.326. While avoiding the first major support level (S1) at $0.316, ADA rose to a late high of $0.343. However, ADA failed to reach the first major resistance level (R1) at $0.346, to end the day at $0.338.
Network updates and FTX news provide support
On Thursday, Input Output HK (IOHK) released its latest network update schedules in a series of tweets. According to the latest news to updateAnd
“Cardano’s next upgrade targeted for February will bring new built-in features to Plutus, the smart contract programming language for the Cardano blockchain, to support ECDSA and Schnorr cryptographic signatures to make it easier for developers to build cross-border applications.”
IOHK added that the upgrade will provide improved interoperability and secure cross-chain DApp development, making it easier for developers to securely work with other blockchains.
As IOHK appears ready to drive an influx of new projects into the Cardano network, the planned upgrade supports the positive outlook and increased use of ADA.
While the network updates were positive, reports of a possible FTX restart supported the bullish session.
The IOHK will release its weekly development report this afternoon, with stats likely to provide guidance. A large influx of projects would support the outbreak of the ADA. Updates to the planned launches of two algorithmic stablecoins will also have an impact. However, the broader crypto market will need to offer a bullish session.
ADA price action
This morning, ADA is up 0.30%, at $0.339. A mixed start to the day saw ADA drop to an early low of $0.336 before rising to a high of $0.341.
ADA needs to avoid falling through the $0.336 pivot to test the first major resistance level (R1) at $0.345 and the resistance at $0.350. A move through Thursday’s high of $0.343 could indicate a breakout session. However, Cardano’s updates and the broader crypto market will need to support a bullish session.
In the event of another breakout, ADA is likely to test the second major resistance level (R2) at $0.353 and the resistance at $0.355. The third major resistance level (R3) is located at $0.370.
A fall through the pivot ($0.336) would trigger the first major support level (S1) at $0.328. Barring a large-scale crypto sell-off, ADA should avoid below $0.320 and the second major support level (S2) at $0.319. The third major support level (S3) is located at $0.302.
This morning, both the Exponential Moving Averages and the 4-hour candlestick chart (below) sent a bullish signal.
The ADA was above the 50-day EMA, currently at $0.336. The 50-day EMA has diverged from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, giving bullish signals.
A wait above the 50-day EMA ($0.336) will support a breakout from R1 ($0.345) to target R2 ($0.353) and $0.355. However, a drop through the 50-day moving average ($0.336) will bring S1 ($0.328) and the 100-day moving average ($0.320) into view. A decline through the 50-day moving average could indicate a change in investor sentiment.
Bulls Target $0.355 in IOHK – Coinphony Updates [SV]