the main ideas:
- On Tuesday, Cardano (ADA) fell 1.34% to end the session at $0.441.
- US economic indicators boosted Fed fears, spurred by rising consumer confidence that sent riskier assets into the red.
- Technical indicators are bearish. With ADA staying below the 50-day EMA, below $0.40 remains in play.
On Tuesday, the ADA was down 1.34%. Reversing its 0.22% gain from Monday, ADA ended the day at $0.441.
The bullish morning saw the ADA climb to a mid-morning high of $0.463. ADA has breached the first major resistance level (R1) at $0.453 and the second major resistance level (R2) at $0.459.
However, the ADA fell to its lowest level in the late afternoon at $0.437. Finding support at the first major support level (S1) at $0.439, ADA ended the day at $0.441.
US economic indicators have overshadowed the potential positive impact of Vasil’s hard fork on migration into the Cardano ecosystem.
ADA and Crypto Market Still Intertwined with Statistics and Federal Reserve
After the Federal Reserve split last Thursday, the impact of the US stock market returned on Tuesday. US economic indicators pointed to further support for the Fed’s aggressive policy objectives to bring inflation to target.
In September, the CB Consumer Confidence Index jumped from 103.6 to 108.0. Labor market conditions pushed consumer sentiment north, offsetting concerns about inflation, mortgage rates and the Fed’s potential impact on the US economy.
Significantly, the recovery in confidence supports the Fed’s plans to raise interest rates on a steeper rate curve to tackle inflation. However, the survey cut-off was on September 20, before the Fed rate hike and FOMC expectations.
And while it affected US economic indicators, the network updates remain ADA positive. Investors expect improved network performance to lead to Cardano adoption and a significant increase in project migration into the Cardano ecosystem.
Overnight, input output Hong Kong announce Availability of new post-Vasil hard fork capabilities, which were ADA positive.
ADA price action
This morning, the ADA is down 2.72% to $0.429. A bearish morning saw the ADA drop from an early high of $0.443 to a low of $0.425.
ADA declined through the first major support level (S1) at $0.431. News of Apple Inc (AAPL) reducing production of the new iPhone has affected the riskier assets.
A move through the S1 and the $0.447 pivot would give the bulls a run at the first major resistance (R1) level at $0.457 and Tuesday’s high at $0.463. A noticeable shift in risk sentiment will be needed to support a return to $0.460.
In the event of the breakout session, the second major resistance level (R2) is likely to appear at $0.473. The third major resistance level (R3) is located at $0.499.
Failure to move through S1 and the pivot will leave the second major support level (S2) at $0.421 in play. However, with the exception of the extended sell-off, ADA should avoid below $0.420. The third major support level (S3) is located at $0.395.
This morning, the exponential moving averages and the 4 hour candlestick chart (below) both sent a bearish signal.
The ADA is below 50 days, currently at $0.453. The 50 day moving average has pulled back from the 100 day moving average, while the 100 day moving average has pulled back from the 200 day moving average, giving bearish signals.
ADA move across the 50-day moving average ($0.453) should give the bulls a run at R1 ($0.457) and the 100-day moving average ($0.461). The 200-day EMA is at $0.469. However, after Tuesday’s dip through the 50-day EMA, the ADA will likely test the S2 ($0.421) before any recovery.
#Bears #Eye #iPhone #Production #News