On Tuesday, ADA rose by 2.63% to end the day at $0.312.
ADA found support from the broader market as FTX contagion fears eased in response to updates on FTX assets.
The technical indicators remain bearish, with ADA sitting below the 50-day EMA, leaving sub-$0.300 in view.
On Tuesday, ADA rose by 2.63%. Reversing a 2.56% loss from Monday, ADA ended the day at $0.312. Notably, ADA fell to sub-$0.300 for the third time since the collapse of FTX.
A choppy start to the day saw ADA fall to a mid-morning low of $0.298. Steering clear of the First Major Support Level (S1) at $0.295, ADA rallied to an early afternoon high of $0.316. ADA broke through the First Major Resistance Level (R1) at $0.313 before ending the day at $0.312.
FTX contagion news remained the key driver on Tuesday, delivering ADA and the broader market with much-needed support. However, Cardano network updates were also ADA-positive.
IOHK Updates and Easing FTX Contagion Deliver Support
Input Output HK (IOHK) announced the launch of Djed, Cardano’s over-collateralize algorithmic stablecoin. According to the Coti press release, Djed will go live on the Cardano mainnet in January 2023.
Total value locked figures were also price positive, with Cardano’s total value locked rising by 5.72% over 24 hours.
According to DeFiLlama, Cardano’s TVL stood at $53.85 million this morning. While up over 24 hours, the TVL is down 23.6% in November versus a market cap fall of 21.5% to $10.89 billion, suggesting further ADA losses. Investors will need to monitor TVL versus market cap divergence for price action.
While the news was price positive, updates on FTX assets delivered crypto market support. News of FTX holding $1.24 billion in cash reserves and market interest in acquiring FTX assets eased contagion risk.
For the day ahead, we expect price movement to remain in the hands of FTX updates.
ADA Price Action
This morning, ADA was up 1.28% to $0.316. A mixed start to the day saw ADA fall to an early low of $0.309 before rising to a high of $0.317.
ADAUSD 231122 Daily Chart
ADA needs to avoid a fall through the $0.309 pivot to target the First Major Resistance Level (R1) at $0.319. A return to the morning high of $0.317 would signal a breakout session. Bullish crypto market sentiment would support a breakout from R1.
In case of an extended rally, the Second Major Resistance Level (R2) at $0.327 and $0.330 would come into play. The Third Major Resistance Level (R3) sits at $0.345.
A fall through the pivot would bring the First Major Support Level (S1) at $0.301 into play. However, barring a contagion-fueled sell-off, ADA should avoid sub-$0.290. The Second Major Support Level (S2) at $0.291 should limit the downside.
The Third Major Support Level (S3) sits at $0.273.
ADAUSD 231122 Hourly Chart
This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.
ADA sat below the 50-day, currently at $0.323. The 50-day EMA eased back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA, delivering bearish signals.
A move through R1 ($0.319) would give the bulls a run at the 50-day EMA ($0.323) and R2 ($0.327). However, failure to move through the 50-day EMA would leave sub-$0.300 in play.
This article has been originally published at: https://www.fxempire.com/forecasts/article/ada-price-prediction-a-return-to-0-320-to-bring-0-350-into-view-1207600