ADA joined the broader crypto market in a breakout session on Friday, rallying 7.36% to end the day at $0.350.
Input Output HK (IOHK) weekly development updates took a back seat as investors turned their backs on the US banking sector in favor of the digital asset space.
The technical indicators turned bullish, bringing $0.40 into play.
ADA rallied by 7.36% on Friday. Following a modest 0.31% gain on Thursday, ADA ended the day at $0.350. Significantly, ADA held onto the $0.350 handle for the first time since February 2.
A bearish start to the day saw ADA fall to an early morning low of $0.322. Steering clear of the First Major Support Level (S1) at $0.319, ADA rallied to a final-hour high of $0.351. ADA broke through the Major Resistance Levels to end the day at $0.350.
Investors Ignore the IOHK Weekly Development Report
Input Output HK (IOHK) released the Weekly Development Report on Friday. The numbers continued to disappoint, with new projects launched on the Cardano network rising modestly after stalling for two consecutive weeks. Increasing regulatory and lawmaker scrutiny could be affecting project launches.
According to the March 17 report,
118 projects launched on the Cardano network, up by one from March 10.
Projects building on the Cardano network totaled 1,213, up by three from the previous report.
Plutus scripts totaled 6,052, of which 848 were Plutus V2 scripts. As of March 10, Plutus scripts stood at 5,979.
Before the Vasil hard fork, the number of projects launched on Cardano had stood at 98, with 1,100 projects building on the Cardano network.
Other stats included 63.0 million transactions (Previous Report: 62.6m), 7.97 million native tokens (PR: 7.92 million), and 70,737 token policies (PR: 70,484).
Network Updates and US Banking Crisis Deliver Support
While the weekly development update was disappointing, Cardano network updates continued to draw interest.
On Friday, IOHK announced the launch of Dynamic P2P on Cardano. Designed to enhance network stability, Dynamic P2P provides several benefits, including,
Saves SPOs time and effort.
Optimizes network performance.
Makes the network more resilient to any communication delays or downtime.
Strengthens security by deterring denial of service (DoS) attacks.
While network updates delivered support, the growing US banking sector crisis was the key to the breakout session. Demand for cryptos continued to rise, with bitcoin (BTC) surging by 9.14%.
Investors responded to the news of SV Financial Group (SIVB) filing for bankruptcy protection, Fed bailouts rising beyond levels seen during the global financial crisis, and 11 banks bailing out First Republic Bank.
The NASDAQ Composite Index fell by 0.74%, with the Dow and S&P 500 seeing losses of 1.19% and 1.10%, respectively. In contrast, the crypto market cap surged by 7.32% ($77.35 billion) to $1,134 billion, its highest level since August 2022.
The Day Ahead
Input Output HK (IOHK) updates will continue to draw attention. However, a lack of network news should leave ADA in the hands of the broader crypto market. While the weekly update disappointed for a third consecutive week, network enhancements continue to deliver price support.
Beyond Cardano, investors should monitor Binance and FTX-related news and updates from the ongoing SEC v Ripple case. Following the surge in demand for cryptos in reaction to the US banking sector crisis, regulatory and US lawmaker chatter will also influence.
ADA Price Action
This morning, ADA was up 0.29% to $0.351. A choppy start to the day saw ADA fall to an early low of $0.345 before rising to a high of $0.358.
ADAUSD 180323 Daily Chart
ADA has to avoid the $0.341 pivot to target the First Major Resistance Level (R1) at $0.360. A move through the morning high of $0.358 would support a bullish session. However, Cardano network updates and the broader crypto market would need to provide support.
In case of a breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.370. The Third Major Resistance Level (R3) sits at $0.399.
A fall through the pivot ($0.341) would bring the First Major Support Level (S1) at $0.331 into play. However, barring a broad-based crypto sell-off, ADA should avoid sub-$0.330 and the Second Major Support Level (S2) at $0.312. The Third Major Support Level (S3) sits at $0.283.
ADAUSD 180323 Hourly Chart
Today, the EMAs and the 4-hourly candlestick chart (below) sent bullish signals.
ADA sat above the 200-day EMA, currently at $0.347. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.
Avoiding the 200-day EMA ($0.347) would support a breakout from R1 ($0.360) to give the bulls a run at R2 (0.370). However, a fall through the 200-day EMA ($0.347) would bring the 100-day ($0.338) and 50-day ($0.334) EMAs into view. A slide through the 50-day EMA would send a bearish signal and give the bears a run at the Major Support Levels.
ADAUSD 180323 4-Hourly Chart
This article has been originally published at: https://www.fxempire.com/forecasts/article/ada-price-prediction-bulls-eye-0-370-on-cardano-network-news-1315028