ADA Price Prediction: Bulls Eye a First Visit to $0.400 Since November

Key Insights:

  • ADA rose by 0.82% on Saturday to end the day at $0.368.
  • Input Output HK (IOHK) updates and sentiment toward the imminent launches of two algorithmic stablecoins delivered support.
  • The technical indicators are bullish, signaling a return to $0.400.

ADA rose by 0.82% on Saturday. Following a 7.99% rally 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 fall to a late morning low of $0.358. Steering clear of the First Major Support Level (S1) at $0.344, ADA rallied to a late afternoon high of $0.381. ADA broke through the First Major Resistance Level (R1) at $0.376 before easing back to end the day at $0.368.

IOHK Updates and a Positive Outlook Support a Trend Bucking Session

ADA bucked a bearish crypto market session on Saturday. Input Output (HK) updates continued supporting a return to $0.400.

On Saturday, Input Output HK (IOHK) rereleased its Weekly Development Report. Notably, a larger-than-normal increase in projects building on the Cardano network supported a trend-bucking Saturday session.

According to the January 20 report, projects building on the Cardano network totaled 1,181, up by 19 from the previous weekly report. The continued upward trend in Plutus scripts was also bullish. Plutus scripts totaled 5,494, of which 597 were Plutus V2 scripts. As of January 13, Plutus scripts stood at 5,386.

While the updates were bullish, sentiment toward ADA adoption remains the key driver. Beyond the use of ADA for payments, DeFi and NFT numbers are also price positive.

According to DeFi Llama, the Cardano total value locked (TVL) stood at $74.21 million this morning. While up by just 0.56% over 24 hours, the TVL is up 46.1% in January.

Cardano TVL 220122

While below 30-day highs, NFT trading volumes were also higher on Saturday, supporting the bullish session. According to opencnft, trading volumes rose to 1.279 million ADA on Saturday. Volumes had fallen below one million, down from a 30-day high of 1.87 million on January 2.

Updates on the planned launches of two algorithmic stablecoins and expectations of an influx of projects onto the Cardano network are bullish. With several network developments also underway, including Hydra and Voltairewhale activity has also drawn the attention of investors.

Today, chatter on the algorithmic stablecoin launches will likely be a focal point.

ADA Price Action

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

ADAUSD 220123 Daily Chart

Technical Indicators

ADA needs to move through the $0.369 pivot to test the First Major Resistance Level (R1) at $0.380 and the Saturday high of $0.381. A return to $0.375 would signal a breakout session. However, Cardano updates and the broader crypto market would need to support a bullish session.

In the event of another breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.392 and resistance at $0.400. The Third Major Resistance Level (R3) sits at $0.415.

Failure to move through the pivot ($0.369) would leave the First Major Support Level (S1) at $0.357 in play. Barring a broad-based crypto sell-off, ADA should avoid sub-$0.350 and the Second Major Support Level (S2) at $0.346. The Third Major Support Level (S3) sits at $0.323.

ADAUSD 220123 Hourly Chart

This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.

ADA sat above the 50-day EMA, currently at $0.345. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.

A hold above the Major Support Levels and the 50-day EMA ($0.345) would support a breakout from R1 ($0.380) to target R2 ($0.392) and $0.400. However, a fall through S1 ($0.357) would bring S2 ($0.346) and the 50-day EMA ($0.345) into view. A fall through the 50-day EMA would signal a shift in investor sentiment.

ADAUSD 220123 4-Hourly Chart

Source

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