Key Findings:
- On Wednesday, Cardano (ADA) fell 1.15% to end the session at $0.431.
- US economic indicators weighed on the broader crypto market, with ADA seeing a mini two-day winning streak end on hawkish Fed bets.
- Technical indicators remain bearish with ADA below the 50-day EMA to stay in the game below $0.40.
ADA fell 1.15% on Wednesday. ADA partially reversed Tuesday’s 1.87% gain to end the day at $0.431.
After a mixed start to the day, ADA hit an early high of $0.437. ADA missed the first major resistance level (R1) at $0.441 and slipped to an early afternoon low of $0.424. ADA fell through the first major support level (S1) at $0.428 before staging a partial recovery late afternoon to end the day at $0.431.
US economic indicators raise bets on a hawkish Fed but ease recession fears
Network updates took a back seat for another session with US economic indicators leading the way.
September ADP Nonfarm and ISM Non-Manufacturing PMI numbers tested investor sentiment. While the numbers raised the likelihood of a Fed rate hike by 75 basis points, the stats also eased investors’ fears of a US economic recession.
The ISM non-manufacturing PMI slipped to 56.7 from 56.9, reflecting robust service sector growth. Notably, the ISM sub-index for non-manufacturing employment rose to 53.0 from 50.2, with new orders rising at a solid pace.
ADP figures also painted a positive picture, with non-farm payrolls up by 208k. In August, non-farm payrolls rose by 185,000.
While US economic indicators were the key drivers, news of MuesliSwap going live was positive for ADA. The MuesliSwap team announced
“We have officially launched Plutus v2 contracts and liquidity pools, making us the first DEX on #Cardano with order book and AMM trading.”
While the MuesliSwap news was good news, investors are awaiting Input Output HK’s weekly update, with project numbers likely to take center stage.
ADA Price Action
This morning, ADA is up 0.93% to $0.435. A bullish start to the day saw the ADA surge from an early low of $0.431 to a high of $0.437 before easing back down.
This morning, the first major resistance level (R1) at $0.437 capped the upside.
ADAUSD 061022 daily chart
Technical indicators
ADA needs to avoid a decline through the $0.431 pivot to retarget the first major resistance level (R1) at $0.437. US economic indicators and central bank gossip would need to be crypto-friendly to support another bullish session.
In the event of a breakout session, the Second Major Resistance Level (R2) at $0.443 and $0.445 would likely come into view. The third major resistance level (R3) is located at $0.457.
A break through the pivot point would bring into play the first major support level (S1) at $0.424. However, barring an extended sell-off, ADA should avoid below $0.420 and the second major support level at $0.418. The third major support level (S3) lies at $0.405.
ADAUSD 061022 hourly chart
This morning, the EMAs and the 4-hour candlestick chart (below) sent a bearish signal.
ADA was below the 100-day price, currently at $0.442. The 50-day EMA flattened on the 100-day EMA, while the 100-day EMA declined from the 200-day EMAs, providing mixed signals.
An ADA move through R1 ($0.437) would give the bulls a run to the 100-day EMA ($0.442) and R2 ($0.444). The 200-day EMA stands at $0.455. However, a break through the 50-day EMA ($0.434) would bring S1 ($0.424) and below $0.420 into play.
ADAUSD 061022 4 hour chart
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