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ADAUSD Market Update

2/9/2023 2:25 PM

The active growth of the ADA/USD pair, observed since the beginning of 2022, slowed down as the quotes failed to consolidate above 0.4000.

Monetary factors were the main reason for the cryptocurrency correction: earlier, investors believed that the US Federal Reserve would continue to slow down the pace of monetary tightening, but now the "hawkish" rhetoric is allowed to continue, as the national labor market is still strong, which was confirmed by macroeconomic indicators published last Friday. In such a scenario of the regulator's actions, the US currency will continue to receive support, and digital assets will go into correction. Additional pressure on ADA quotes is exerted by reports of the intention of the US authorities to ban staking for retail investors in the country. So far, there is no official confirmation of the information, but cryptocurrency community members are negative about this possibility. Thus, the head of the Coinbase exchange, Brian Armstrong, called the announced prospects "a terrible choice for the United States," which could lead to the departure of large digital companies.

However, the potential for strengthening the position of the ADA/USD pair does not seem to be exhausted and may be associated with the activity of the "whales," which has greatly increased since the beginning of the year: according to Santiment, they have already purchased 405.85M coins, which is pushing the price up. Also, the launch of the algorithmic stablecoin Djed on the Cardano network is a positive factor, attracting investors' attention.

The key "bullish" level remains 0.4000 (Fibonacci retracement 50.0%), consolidation above which will allow quotes to rise to 0.4394 (Fibonacci retracement 61.8%, Murrey level [+2/8]). If strong support 0.3660 (Murrey [7/8], Fibonacci retracement 38.2%) is broken down, the decline is likely to increase to the area of 0.3418 (Murrey [6/8]) and 0.3173 (Murrey [5/8], Fibonacci retracement 23.6%).

Technical indicators signal the continuation of the uptrend: Bollinger bands and Stochastic are reversing upwards, while the MACD histogram is decreasing in the positive zone.

Resistance levels: 0.4000, 0.4394. | Support levels: 0.3660, 0.3418, 0.3173.

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