FXEmpire.com –
Key Insights:
– ADA rose by 3.05% to end the Friday session at $0.439.
– Network updates, the Input Output HK (IOHK) weekly development report, and US SEC infighting delivered a bullish session.
– The technical indicators are bullish, bringing $0.500 into view.
ADA rose by 3.05% on Friday.Following a 5.19% rally on Thursday, ADA ended the day at $0.439.Notably, ADA struck a new 2023 high of $0.445 while extending the winning streak to three sessions.
A mixed start to the day saw ADA fall to an early low of $0.423.Steering clear of the First Major Support Level (S1) at $0.408, ADA rallied to a midday high of $0.445.ADA broke through the First Major Resistance Level (R1) at $0.437 to test the Second Major Resistance Level (R2) at $0.447.
An afternoon pullback saw ADA fall to a low of $0.425 before breaking back through R1 to end the day at $0.439.
IOHK Weekly Development Report and Network News Deliver Support
Input Output HK (IOHK) released the Weekly Development Report on Friday.The report revealed a rise in launched projects on Cardano, delivering ADA price support.
According to the April 14
report,
– 124 projects launched on the Cardano network, up by two from April 7.
– Projects building on the Cardano network totaled 1,225, rising by four from the previous report.
– Plutus scripts totaled 7,738, of which 2,369 were Plutus V2 scripts.As of April 7, Plutus scripts stood at 7,597.
Before the Vasil hard fork, the number of projects launched on Cardano had stood at 98, with 1,100 projects building on the Cardano network.
Other stats included 64.6 million transactions (Previous Report: 64.2m), 8.11 million native tokens (PR: 8.09 million), and 71,589 token policies (PR: 71,386).
While the upswing in launched projects on the Cardano network was positive,
news of Lace 1.0 going live on the mainnet was also price positive.
Lace enables users to manage their digital assets and access NFTs, DApps, and DeFi services from a single platform.
SEC Infighting Offsets US Economic Indicators and Hawkish Fed Chatter
In the afternoon session, US retail sales and hawkish Fed chatter tested investor appetite.However, SEC infighting supported a late rebound.
On the US
[economic calendar](/market-activity/economic-calendar) retail sales figures weighed on investor sentiment.In March, retail sales slid by 1.0% versus a forecasted 0.4% decline.Better-than-expected industrial production and consumer sentiment figures failed to support a recovery.
Hawkish Fed chatter contributed to the afternoon reversal, with FOMC member Christopher Waller calling for more rate hikes to bring inflation to target.
Waller had this to
say,
“Monetary policy needs to be tightened further.How much further will depend on incoming data on inflation, the real economy, and the extent of tightening credit conditions.”
Waller’s comments moved the dial, with the probability of a 25-basis point Fed rate hike in May surging from 67.0% to 83.4%, according to the
CME FedWatchTool.
Crypto
[market news](/news-and-insights)was also bearish, with the SEC targeting the DeFi space.On Friday, the SEC was back in the spotlight, issuing a press release, reopening the comment period on proposed changes to the definition of exchange, targeting the DeFi space.
Gary Gensler wrote,
“Make no mistake, many crypto trading platforms already come under the current definition of an exchange and thus have an existing duty to comply with the securities laws.”
However, crypto advocate and SEC commissioner Hester Peirce had different ideas.In an official SEC statement, Peirce
said,
“Rather than embracing the promise of new technology as we have done in the past, here we propose to embrace stagnation, force centralization, urge expatriation, and welcome extinction of new technology.Accordingly, I dissent.”
The Day Ahead
Input Output HK (IOHK) updates will remain the focal point.However, a lack of network updates should leave the broader crypto market to influence.
US regulatory and lawmaker activity will draw interest, with investors needing to track
Binance and Coinbase ( COIN)-related news and updates from the ongoing SEC v Ripple case.
ADA Price Action
This morning, ADA was down 1.37% to $0.433.
A mixed start to the day saw ADA rise to an early high of $0.440 before falling to a low of $0.431.
ADA Technical Indicators
ADA has to move through the $0.436
pivot to target the First Major Resistance Level (R1) at $0.448.A move through the Friday high of $0.445 would support a bullish session.However, Cardano network updates and the broader crypto market would need to provide support.
In case of a breakout, ADA would likely test the Second Major Resistance Level (R2) at $0.458.The Third Major Resistance Level (R3) sits at $0.480.
Failure to move through the pivot ($0.436) would leave the First Major Support Level (S1) at $0.426 in play.However, barring another extended broad-based crypto sell-off, ADA should avoid sub-$0.420 and the Second Major Support Level (S2) at $0.414.The Third Major Support Level (S3) sits at $0.392.
Today, the
EMAs and the 4-hourly candlestick chart (below) sent bullish signals.
ADA sat above the 50-day EMA, currently at $0.406.
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.
Avoiding the Major Support Levels and the 50-day EMA ($0.406) would support a breakout from R1 ($0.448) to give the bulls a run at R2 (0.458).However, a fall through S1 ($0.426) would bring S2 ($0.414) and the 50-day EMA ($0.406) into view.A fall through the 50-day EMA would send a bearish signal.
This
article was originally posted on FX Empire
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