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Key Insights:
- On Friday, ADA joined the broader market in the red, falling 0.95% to end the day at $0.313.
- News of SEC plans to appeal the SEC v Ripple Court ruling weighed on investor sentiment.
- The near-term technical indicators remained bearish, supporting a return to sub-$0.300.
On Friday, cardano (ADA) fell by 0.95%. Following a 2.17% loss on Thursday, ADA ended the day at $0.313.
ADA Price Action
This morning, ADA was down 0.32% to $0.312. A mixed start to the day saw ADA rise to an early high of $0314 before falling to a low of $0.312.
Daily Chart
The Daily Chart showed ADA remained below the $0.326 – $0.328 resistance band. Importantly, ADA stood above the 50-day EMA ($0.311) while sitting below the 200-day EMA ($0.354), sending bullish near-term but bearish longer-term price signals.
However, the 50-day EMA eased back from the 200-day EMA, reflecting bearish momentum.
Looking at the 14-Daily RSI, the 52.56 reading signaled a moderately bullish outlook. Aligned with the 50-day EMA, the RSI signals an ADA move through the $0.326 – $0.328 resistance band. However, a fall through the 50-day EMA ($0.311) would bring the $0.306 – $0.303 support band and sub-$0.300 into view.
4-Hourly Chart
Looking at the 4-Hourly Chart, ADA sat below the 50-day EMA ($0.314) but held above the 200-day EMA ($0.306), sending bearish near-term but bullish longer-term price signals.
Notably, the 50-day EMA narrowed to the 200-day EMA, reflecting bearish near-term momentum.
Looking at the 14-Daily RSI, the 44.48 reading signaled a bearish outlook, with selling pressure outweighing buying pressure. Aligned with the 50-day EMA, the RSI signals an ADA fall through the 200-day EMA ($0.306) and the upper level of the $0.306 – $0.303 resistance band to bring sub-$0.300 into view.
SEC Plans to Appeal the SEC v Ripple Ruling Weighed
On Friday, the news hit the wires of the SEC planning an appeal. Defense attorney James Filan shared a WSJ article and the SEC pleading in the Terraform Labs/Do Kwon case, saying,
“In the SEC v Terraform Labs/Do Kwon case, the SEC has filed a pleading discussing Judge Torres’s decision in SEC v Ripple in which it states that SEC staff is considering the various available avenues for further review and intends to recommend that the SEC seek such review. SEC Says XRP Ruling Was Wrong, Signals It Will Appeal.”
Beyond XRP, an appeal is also bad news for ADA, among other altcoins that benefited from the SEC v Ripple Court ruling. ADA struck a high of $0.379 in response to the Court ruling before briefly testing buyer appetite at $0.300 on Tuesday.
The Input Output HK (IOHK) weekly development report had a limited impact on Friday, with the number of projects launched holding steady at 135. A modest increase in projects building on the Cardano network and a rise in transactions provided modest support.
According to the July 21 Weekly Development Report,
- The number of projects launched on the Cardano network remained unchanged at 135.
- Projects building on the Cardano network increased by one to 1,265 over one week.
- The total number of native tokens stood at 8.57 million compared with 8.55 million one week earlier.
- Token policies increased from 77,035 to 77,176.
- The total number of transactions increased from 71.2 million to 71.5 million.
The Day Ahead
While it is a quiet day for the crypto markets, investors should monitor the crypto news wires for updates on SEC plans to appeal the SEC v Ripple Court ruling. A filing would weigh on ADA and the broader market.
However, investors should track ETF chatter, with Binance and Coinbase (COIN)-related news likely to also be focal points.
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