Binance and European Banking News Weigh on Investor Sentiment The disappointing weekly development update numbers left ADA in the hands of the broader
Binance and European Banking News Weigh on Investor Sentiment
The disappointing weekly development update numbers left ADA in the hands of the broader crypto market.
News of Binance suspending deposits and withdrawals because of a temporary glitch sent ADA and the crypto market into negative territory. News of Binance employees aiding users to evade KYC protocols was also bearish.
The latest news on Binance will likely draw more regulatory and lawmaker scrutiny at a time when US lawmakers and regulators are already investigating the platform’s dealings.
The Day Ahead
Input Output HK (IOHK) updates will continue to draw attention. However, a lack of network news should leave ADA in the hands of the broader crypto market.
Investors should continue monitoring regulatory activity, with US regulators and lawmakers turning the screw on the digital asset space. Binance and Coinbase (COIN) are currently in the spotlight.
Banking sector-related news will also move the dial. Deutsche Bank (DB) shares slid by 8.53% on Friday as investors shifted their focus from Credit Suisse Group AG (CS) to the German bank. The markets are looking for the next big bank to need support.
ADA Price Action
This morning, ADA was up 0.28% to $0.361. A range-bound start to the day saw ADA slip to an early low of $0.359 before rising to a high of $0.361.
Technical Indicators
ADA has to move through the $0.363 pivot to target the First Major Resistance Level (R1) at $0.370 and the Friday high of $0.373. A return to $0.365 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 $0.381. The Third Major Resistance Level (R3) sits at $0.399.
Failure to move through the pivot ($0.363) would leave the First Major Support Level (S1) at $0.352 in play. However, barring another extended crypto sell-off, ADA should avoid sub-$0.350 and the Second Major Support Level (S2) at $0.345. The Third Major Support Level (S3) sits at $0.327.
Today, the EMAs and the 4-hourly candlestick chart (below) sent bullish signals.
ADA sat above the 50-day EMA, currently at $0.355. The 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish signals.
Avoiding the 50-day EMA ($0.355) would support a breakout from R1 ($0.370) to give the bulls a run at R2 (0.381). However, a fall through the 50-day EMA ($0.355) would bring the S1 ($0.352) and the 200-day EMA ($0.350) into view. A slide through the 50-day EMA would send a bearish signal and give the bears a run at the Major Support Levels.
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