ADA saw red for a second consecutive session on Tuesday, sliding by 4.27% to end the day at $0.359.
A lack of algorithmic stablecoin launch news left ADA in the hands of a bearish crypto market.
However, the technical indicators are bullish, signaling a return to $0.400.
ADA slid by 4.27% on Tuesday. Following a 0.27% decline on Monday, ADA ended the day at $0.359. Notably, ADA revisited the $0.38 handle for the fourth consecutive session.
A bullish start to the day saw ADA rise to a late-morning high of $0.383. Coming up against the First Major Resistance Level (R1) at $0.383, ADA slid to a late low of $0.355. ADA fell through the First Major Support Level (S1) at $0.368 and the Second Major Resistance Level (S2) at $0.361 to end the day at $0.359.
Network Updates Took a Backseat in a Broad-Based Crypto Pullback
On Tuesday, Input Output (HK) (IOHK) released the latest on the Lace platform, announcing that the 0.5.1 release of the Lace Platform is ready for public testing. IOHK also circulated the Cardano Community Digest for January 23. Focal points of the Digest included,
Toolkit launch for developing custom sidechains on Cardano.
Update on temporary disruption of nodes.
1-year celebration of Cardano Catalyst Women.
DropDropz open-sourcing their on-Chain voting system.
Top 15 most engaged Cardano topics on Reddit, including the first automotive project with e-Tuk-Tuk in Davos.
The latest Digest gave investors a snapshot of the level of activity on the Cardano network. However, the updates weren’t enough to prevent a sharp pullback, with news of Binance commingling customer and reserve funds in a single wallet and a bearish NASDAQ Index weighing on investor sentiment.
Bearish sentiment toward the temporary disruption of nodes likely continued to contribute to the bearish mood.
Today, investors should continue monitoring network updates and the crypto news wires. Today, COTI announced the launch date of the Djed algorithmic stable, which should deliver near-term price support. COTI will launch the Djed algo stablecoin next week. However, updates from Binance and on FTX and Genesis bankruptcy proceedings will also influence.
In the afternoon session, US corporate earnings and the NASDAQ Index will likely influence investor sentiment. Better-than-forecasted earnings results and positive outlooks would support riskier assets. Boeing (BA), IBM (IBM), and Tesla (TSLA) are among the big names releasing earnings results today.
ADA Price Action
This morning, ADA was down 1.39% to $0.354. A bearish start to the day saw ADA fall from an early high of $0.359 to a low of $0.347. The First Major Support Level (S1) at $0.348 limited the downside.
ADAUSD 250123 Daily Chart
ADA needs to move through the $0.366 pivot to test the First Major Resistance Level (R1) at $0.376 and the Tuesday high of $0.383. A return to $0.370 would signal a breakout session. However, Cardano updates and the broader crypto market would need to support a bullish session.
In the event of a breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.394 and resistance at $0.400. The Third Major Resistance Level (R3) sits at $0.422.
Failure to move through the pivot ($0.366) would leave the First Major Support Level (S1) at $0.348 in play. Barring another broad-based crypto sell-off, ADA should avoid sub-$0.340 and the Second Major Support Level (S2) at $0.338. The Third Major Support Level (S3) sits at $0.310.
ADAUSD 250123 Hourly Chart
This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.
ADA sat above the 100-day EMA, currently at $0.342. The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA widened from the 200-day EMA, delivering mixed signals.
A move through the 50-day EMA ($0.360) would support a breakout from R1 ($0.376) to target R2 ($0.394) and $0.390. However, a fall through S1 ($0.348) would bring the 100-day EMA ($0.342) and S2 ($0.338) into view. A move through the 50-day EMA would signal a bullish move.
This article has been originally published at: https://www.fxempire.com/forecasts/article/ada-price-prediction-bulls-to-target-0-400-on-djed-launch-date-1264394