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Key Insights:
- On Friday, ADA rallied by 6.12% to end the day at $0.399.
- Input Output HK (IOHK) weekly development updates and US economic indicators delivered a bullish session.
- The technical indicators are bullish, bringing $0.450 into play.
ADA rallied by 6.12% on Friday. Reversing a 1.31% loss from Thursday, ADA ended March up 13.34% to $0.399. The second monthly gain from three delivered a 62% gain for the first quarter. Notably, ADA ended a five-quarter losing streak.
A range-bound start to the day saw ADA fall to a mid-morning low of $0.375. Steering clear of the First Major Support Level (S1) at $0.368, ADA rallied to a mid-afternoon high of $0.409. ADA broke through the First Major Resistance Level (R1) at $0.386 and the Second Major Resistance Level (R2) at $0.395 to end the day at $0.399.
IOHK Weekly Development Report Delivers Support
Input Output HK (IOHK) released the Weekly Development Report on Friday. The report revealed an upswing in projects delivering ADA price support. However, intensifying regulatory and lawmaker scrutiny could still be affecting project launches.
According to the March 31 report,
- 119 projects launched on the Cardano network, up by one from March 24.
- Projects building on the Cardano network totaled 1,221, up by six from the previous report.
- Plutus scripts totaled 7,546, of which 2,312 were Plutus V2 scripts. As of March 24, Plutus scripts stood at 7,489.
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 63.9 million transactions (Previous Report: 63.5m), 8.06 million native tokens (PR: 8.03 million), and 71,128 token policies (PR: 70,937).
US Economic Indicators and the NASDAQ Support a Bullish Session
Easing fears of a 2008 Global Financial Crisis reboot returned the investor focus to US economic indicators and the Fed.
The Core PCE Price Index increased by 4.6% versus a forecasted 4.7%. In January, the Index increased by 4.7%. Month-on-month, the Index rose by 0.3% versus a forecasted 0.4%. The softer-than-expected inflation figures supported the appetite for riskier assets.
The US Indexes responded to the softer inflation figures, with the NASDAQ Composite Index rising by 1.74%, as bets of another Fed rate hike subsided.
The Day Ahead
Input Output HK (IOHK) updates will continue to influence. However, a lack of network updates should leave ADA in the hands of the broader crypto market.
US regulatory and lawmaker activity will draw interest, with investors needing to track Binance and Coinbase (COIN)-related news.
ADA Price Action
This morning, ADA was down 0.25% to $0.398. A mixed start to the day saw ADA slip to an early low of $0.394 before rising to a high of $0.400.
Technical Indicators
ADA has to avoid the $0.394 pivot to target the First Major Resistance Level (R1) at $0.414. A move through the Friday high of $0.409 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 $0.428. The Third Major Resistance Level (R3) sits at $0.462.
A fall through the pivot ($0.394) would bring the First Major Support Level (S1) at $0.380 into play. However, barring another extended broad-based crypto sell-off, ADA should avoid sub-$0.380 and the Second Major Support Level (S2) at $0.360. The Third Major Support Level (S3) sits at $0.326.
Today, the EMAs and the 4-hourly candlestick chart (below) sent bullish signals.
ADA sat above the 50-day EMA, currently at $0.373. The 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish signals.
Avoiding S1 ($0.380) and the 50-day EMA ($0.373) would support a breakout from R1 ($0.414) to give the bulls a run at R2 (0.428). However, a fall through S1 ($0.380) and the 50-day EMA ($0.373) would bring the 100-day EMA ($0.363) and S2 ($0.360) into view. A slide through the 50-day EMA would send a bearish signal.
This article was originally posted on FX Empire
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