Key Insights: – ADA rose by 1.08% on Tuesday.Support from the broader crypto market delivered the upside.- Vasil hard fork news updates took a back seat, with crypto investors eyeing US economic indicators ahead of the Jackson Hole Symposium.- Technical indicators are bearish and pointing to sub-$0.40, with ADA sitting below the 50-day EMA.
On Tuesday, ADA rose by 1.08%.Reversing a 0.22% decline from Monday, ADA ended the day at $0.4660.
A choppy start to the day saw ADA fall to a mid-morning low of $0.4460.Finding support at the First Major Support Level (S1) at $0.4457, ADA rallied to a final hour high of $0.4700 before easing back.The First Major Resistance Level (R1) at $0.4707 capped the upside late in the session.It was all eyes on the US economy ahead of the Jackson Hole Symposium and the heavily anticipated Fed Chair Powell speech on Friday.Service Sector Woes Deliver Temporary Respite Amidst a Bearish Backdrop On Tuesday, US private sector PMIs reignited fears of a US economic recession.In August, the services PMI slid from 47.3 to 44.1, reflecting a more marked contraction.
As a result, the US composite PMI fell from 47.7 to 45.0, indicating a deeper private sector contraction midway through the quarter.The disappointing numbers provided crypto relief, with the service sector numbers likely to test the Fed’s resolve in delivering another 75 basis point rate hike.The weak numbers are negative for ADA and the broader crypto market and will likely create downward price pressures.The worst combination would be the threat of an economic recession and a 75 basis point rate hike.
Fed Chair Powell’s speech on Friday will provide the markets with guidance on what to expect.While the stats are ultimately crypto price negative, there was progress towards the Vasil hard fork.According to the latest PoolTool figures, 45% of the Cardano SPO nodes have upgraded to v1.35.3, up from 33% on Tuesday.75% is the target.
ADA Price Action At the time of writing, ADA was down 1.50% to $0.459.A bearish start to the day saw ADA fall from an early high of $0.467 to a low of $0.457.Technical Indicators An ADA move through the $0.4607 pivot would support a run at the First Major Resistance Level (R1) at $0.4753.ADA would need support from the broader market to give ADA a run at the Tuesday high of $0.47.
Positive US core durable goods orders should deliver a bullish session.In the case of an extended crypto rally, ADA could test the Second Major Resistance Level (R2) at $0.4847 and resistance at $0.4850.The Third Major Resistance Level (R3) sits at $0.5087.Failure to move through the pivot would give the bears a run at the First Major Support Level (S1) at $0.4513.In an extended sell-off, ADA would likely test the Second Major Support Level (S2) at $0.4367 and support at $0.4350.Weak US stats could intensify selling pressure early in the US session.The Third Major Support Level (S3) sits at $0.4127.This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.
ADA sat below the 50-day EMA, currently at $0.4840.Today, the 50-day EMA fell back from the 100-day EMA.Following Monday’s bearish cross, the 100-day EMA eased back from the 200-day EMA, both ADA price negatives.A further pullback of the 50-day EMA from the 100-day EMA would bring the Major Support Levels into play.
However, an ADA move through R1 ($0.4707) would give the bulls a look at the 50-day EMA ($0.4840) and R2 ($0.4847)..