[ad_1]
Key Insights:
- On Friday, ADA joined the broader market in the green, gaining 0.65% to end the day at $0.310.
- US economic indicators offset uncertainty surrounding the SEC and plans to appeal the SEC v Ripple Court ruling.
- The near-term technical indicators remained bullish, supporting a return to sub-$0.315.
On Friday, cardano (ADA) gained 0.65%. Following a 0.33% gain on Thursday, ADA ended the day at $0.310.
ADA Price Action
This morning, ADA was up 0.32% to $0.311. A bullish start to the day saw ADA rise from an opening price of $0.310 to a high of $0.314 before easing back.
Daily Chart
The Daily Chart showed ADA remained below the $0.326 – $0.328 resistance band. Importantly, ADA stood above the 50-day EMA ($0.310) while sitting below the 200-day EMA ($0.351), sending bullish near-term but bearish longer-term price signals.
Looking at the 14-Daily RSI, the 52.20 reading signaled a moderately bullish outlook. Aligned with the 50-day EMA, the RSI signals an ADA run the $0.326 – $0.328 resistance band. However, a fall through the 50-day EMA ($0.310) 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 above the 50-day ($0.310) and 200-day ($0.307) EMAs, sending bullish near and longer-term price signals.
Notably, the 50-day EMA pulled away from the 200-day EMA, reflecting bullish near-term momentum.
Looking at the 14-Daily RSI, the 55.97 reading signaled bullish sentiment, with buying pressure outweighing selling pressure. Aligned with the 50-day EMA, the RSI signals an ADA run at the $0.326 – $0.328 resistance band.
Easing Bets on a US Recession Offset Sentiment Toward the SEC
US economic indicators supported riskier assets on Friday. After hotter-than-expected Q2 GDP numbers, US Core PCE Price Index numbers eased bets on a September Fed interest rate hike. Significantly, an end to the Fed monetary policy tightening cycle and the Q2 GDP numbers support the soft-landing theory.
However, uncertainty over SEC plans to appeal the SEC v Ripple Court ruling remained a drag. A successful SEC appeal would impact other tokens, including ADA, which could lead to a sharp pullback in project activity on the Cardano network.
The Input Output HK (IOHK) weekly development report had a limited impact on Friday, with project numbers relatively steady. A modest increase in projects building on the Cardano network and a rise in transactions provided modest support.
According to the July 28 Weekly Development Report,
- The number of projects launched on the Cardano network increased by one to 136.
- Projects building on the Cardano network remained unchanged at 1,265 over one week.
- The total number of native tokens stood at 8.61 million compared with 8.57 million one week earlier.
- Token policies increased from 77,176 to 77,615.
- The total number of transactions increased from 71.5 million to 72.3 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.
However, investors should track ETF chatter and Binance and Coinbase (COIN)-related news, which would move the dial.
[ad_2]
Source link
