The bulls made their first visit to $0.400 since November

the main ideas:

  • ADA rose 0.82% on Saturday to end the day at $0.368.
  • Input Output HK (IOHK) updates and sentiment towards the imminent launch of two algorithmic stablecoins provided support.
  • Technical indicators are bullish, which indicates a return to $0.400.

ADA rose 0.82% on Saturday. After rising 7.99% on Friday, ADA ended the day at $0.368. Notably, ADA revisited the $0.38 handle for the first time since November 8.

A mixed start to the day saw ADA drop to a morning low of $0.358. While avoiding the first major support level (S1) at $0.344, ADA rose to a high of $0.381 in the late afternoon. ADA broke the first major resistance level (R1) at $0.376 before retreating to end the day at $0.368.

IOHK updates and positive outlook support trend stop session

The ADA bucked the cryptocurrency bear market session on Saturday. Inputs (HK) updates continued to support a return to $0.400.

On Saturday, Entry HK (IOHK) went out. He was re-released Weekly progress report. It is worth noting that the higher than usual rise in projects built on the Cardano network supported the bullish Saturday session.

According to the January 20 report, the number of projects based on the Cardano network reached 1,181, up 19 from the previous weekly report. The continuing upward trend in Plautus’ texts was also bullish. Plautus texts totaled 5,494, of which 597 were Plautus V2 texts. On January 13, Plotsmanus was 5386.

Although updates have been bullish, sentiment against ADA adoption remains the main driver. In addition to using ADA for payments, DeFi and NFT numbers are also price positive.

According to DeFi Llama, the total value of Cardano locked (TVL) is $74.21 million as of this morning. Although TVL rose by only 0.56% in 24 hours, TVL rose by 46.1% in January.

Cardano TVL 220122

Although NFT volumes were below 30-day highs, they were also higher on Saturday, supporting the bullish session. According to opencnft, trading volumes rose to 1.279 million ADA on Saturday. Trading volume fell below 1 million, down from a 30-day high of 1.87 million on January 2.

Updates on the planned launches of two algorithmic stablecoins and projections for the influx of projects into the Cardano network are optimistic. With several network developments also underway, including Hydra and Voltaire, investors have also taken note of the elective activity.

Today, the talk about the launch of the stablecoin algorithm is likely to be a focal point.

ADA price action

This morning, ADA is down 0.27%, at $0.367. A mixed start to the day saw ADA climb to an early high of $0.376 before falling to a low of $0.366.

ADAUSD 220123 daily chart

Technical indicators

ADA needs to break the $0.369 pivot to test the first major resistance level (R1) at $0.380 and Saturday’s high at $0.381. A return to $0.375 indicates a breakout session. However, Cardano’s updates and the broader crypto market will need to support a bullish session.

In case of another breakout, ADA is likely to test the second major resistance level (R2) at $0.392 and the resistance at $0.400. The third major resistance level (R3) is located at $0.415.

Failure to move through the pivot ($0.369) leaves the first major support level (S1) at $0.357 in play. Barring a large-scale crypto sell-off, ADA should avoid below $0.350 and the second major support level (S2) at $0.346. The third major support level (S3) is located at $0.323.

ADAUSD 220123 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 50-day EMA, currently at $0.345. 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.

Waiting above key support levels and the 50-day EMA ($0.345) would support a breakout from R1 ($0.380) targeting R2 ($0.392) and $0.400. However, a drop through S1 ($0.357) will bring S2 ($0.346) and the 50-day exponential moving average ($0.345) into view. A decline through the 50-day moving average could indicate a change in investor sentiment.

ADAUSD 220123 4-hour chart

First $0.400 Bulls-Eye Visit Since November – Coinphony [SV]

Leave a Reply

Your email address will not be published. Required fields are marked *