ADA Price Prediction: Below $0.355 Due to IOHK Update and US Debt Crisis

Sub Levels –

Key Insights:

  • ADA held a bullish lead on Friday, rising 2.78% to close at $0.370.
  • US economic data, the US debt ceiling crisis could not overshadow the latest news from Input Output HK.
  • However, the technical indicators remain bearish with a break below $0.365.

ADA rose 2.78% on Friday. The ADA ended the day at $0.370, reversing a 2.70% decline from Thursday. Importantly, ADA has broken below the $0.380 handle for four consecutive sessions.

After a volatile morning, the ADA fell to an evening low of $0.354. However, it escaped the first major support level (S1) at $0.349 and the ADA climbed to the late afternoon high of $0.371. ADA has broken out of the first major resistance level (R1) at $0.370 and ended the day at $0.370.

ADA $0.380 short due to debt crisis and consumer sentiment

US economic data and the ongoing US debt crisis pushed the ADA to a trading low of $0.354 before the aid kicked off.

US consumer sentiment declined in May, with the Michigan Consumer Sentiment Index dropping to 57.7 from 63.5 and the Expectations Index dropping to 53.4 from 60.5. Economists expect a more modest decline to 63.0 and 59.8 respectively. Consumer concerns about the economic outlook and the debt crisis weighed on.

Input Output Hong Kong (IOHK) released its weekly development report on Friday. There were no new projects coming in or building new projects on the Cardano network.

According to reports on May 12,

  • 126 projects have been launched on the Cardano network, unchanged since May 5th.
  • A total of 1,240 projects were built on the Cardano network, unchanged from our last report.
  • There were a total of 7,962 Plutus scripts, of which 2,463 were Plutus V2 scripts. As of May 5th, he had 7,872 Plutus scripts.

Before the Vasil hard fork, the number of projects launched on Cardano was 98 and 1,100 projects were built on the Cardano network.

Other stats include 66.3 million transactions (previous report: 65.8 million), 8.24 million native tokens (PR: 8.21 million), and 73,114 token policies (PR: 72,348) .

Although there was no increase in new projects to support breakout sessions, network updates and a growing trend in Plutus scripts and transactions were positive for ADA.

Includes network updates,

  • Cardano Node v.8.0.0 has been released.
  • A new Lace version 1.1.0 has been released.
  • Mithril 2318.0 distribution has been released.
  • The IOG, EMURGO and Cardano Foundation have announced the winners of the CIP-1694 Workshop Grants.

the day ahead

Investors should monitor the Input Output HK (IOHK) network for updates. But without an update, ADA will be left in the hands of the broader crypto market and news related to the U.S. debt ceiling.

Topics related to the SEC vs. Ripple case and Binance and Coinbase (COIN) news will change significantly. However, investors should keep track of U.S. lawmakers and regulatory activity.

ADA price action

This morning the ADA fell 1.08% to $0.366. The day got off to a bearish start, with the ADA dropping from an open price of $0.371 to a low of $0.366.

ADAUSD 130523 Daily Chart

technical indicator

Resistance and support levels

R1 – $ 0.3760 S1 – $ 0.3590
R2 – $ 0.3820 S2 – $ 0.3480
R3 – $ 0.3990 S3 – $ 0.3310

ADA needs to avoid the $0.365 pivot to target the first major resistance level (R1) at $0.376. The morning gains and Friday highs of $0.371 will support the bullish trades. However, updates to the Cardano network and the broader crypto market should provide support.

In case of a breakout, ADA will likely test the second major resistance level (R2) at $0.382 and resistance at $0.385. The third major resistance level (R3) is at $0.399.

The first major support level (S1) at $0.359 will occur after the pivot is crossed. However, ADA should stay above $0.345 unless the broader cryptocurrency sell-off spreads. The second major support level (S2) of $0.348 should cap the downside. The third major support level (S3) is at $0.331.

ADAUSD 130523 hourly chart

The EMA and 4-hour candlestick chart (bottom) sent bearish signals today.

The ADA has broken below the 50-day EMA and is currently at $0.371. The 50-day EMA has retreated from the 200-day EMA and the 100-day EMA has retreated from the 200-day EMA, sending bearish signals.

A move past the 50-day EMA ($0.371) will support a breakout from R1 ($0.376) and allow the bulls to continue at the 100-day EMA ($0.380) and R2 ($0.382). . However, if the 50-day EMA ($0.371) fails, S1 ($0.359) will remain in view. A breakout of the 50-day EMA will send a bullish signal.

ADAUSD 130523 4-hour chart

This article was originally posted on FX Empire

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The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

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