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ADAUSD Market Update

1/26/2023 2:31 PM

The ADA/USD pair has been growing since the beginning of this year as part of the general market trend, but its strengthening has slowed, and the price is in the 0.3730 area.

Investors are discussing the Cardano network outage over the weekend: on Sunday, more than 50% of all its active relay and block generation nodes briefly went offline for an unknown reason, causing transaction delays and instant performance degradation. The anomaly caused an ambiguous reaction from the community. Developers from Input Output Global (IOG) said that such problems were taken into account when creating the blockchain, and self-restoration without the intervention of technical specialists was presented as an indicator of its stability. Nevertheless, the situation aroused investor distrust since such failures in the future may adversely affect the system's functioning.

However, the potential for further growth of the ADA token has not yet been exhausted, and soon it will continue to be supported by monetary factors. The expectation by the market of softening the hawkish rhetoric of the US Federal Reserve will put pressure on the position of the US currency relative to alternative assets, including digital ones.

The trading instrument is close to 0.3906 (Murrey level [8/8]), the breakout of which will give the prospect of further growth to 0.4150 (Murrey level [+1/8]) and 0.4394 (Murrey level [+2/8], Fibonacci correction 61.8%. The key "bearish" level is 0.3418 (Murrey level [6/8]), supported by the middle line of Bollinger bands. After its breakdown, the decline can continue to level 0.2929 (Murrey level [4/8]).

Technical indicators confirm the continuation of the upward trend: Bollinger bands are directed upwards, the MACD histogram is stable in the positive zone, and Stochastic is leaving the overbought zone, not excluding a correction, but its potential seems to be limited.

Resistance levels: 0.3906, 0.4150, 0.4394. | Support levels: 0.3418, 0.3173, 0.2929.

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