Key Insights:
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Cardano (ADA) finds early support to reverse two consecutive days in the red with interest.
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Technical indicators support the morning breakout, with bullish crypto market sentiment kicking in ahead of today’s Fed policy decision.
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ADA’s technical indicators turn bullish, with ADA now sitting above the 50-day EMA.
On Tuesday, Cardano (ADA) fell by 1.26%. Following a 1.19% decline on Monday, ADA ended the day at $0.7709.
Bearish sentiment from across the broader crypto market weighed on ADA early in the week. Market sentiment toward Fed monetary policy tested support ahead of today’s rebound.
Cryptos and the NASDAQ Recouple to Deliver Early Support
On Tuesday, the crypto market decoupled from the NASDAQ 100 to see deep red ahead of this morning’s bounce back.
At the time of writing, the NASDAQ 100 Mini was up 57 points, following a 0.22% gain on Tuesday.
In recent weeks, market sentiment towards tonight’s Fed monetary policy tested crypto investor sentiment. Movement across the crypto market suggests a less hawkish stance than signaled, supported by the US Futures market.
ADA Price Action
At the time of writing, ADA was up by 6.89% to $0.8240. A bullish morning session saw ADA break through the First Major Resistance Level at $0.7933 and the Second Major Resistance Level at $0.8157 to strike a day high of $0.8329.
Technical Indicators
ADA will hold above the day’s Major Resistance Levels and $0.7768 pivot to target the Third Major Resistance Level at $0.8546. ADA would need broader market support to return to $0.83 levels.
In the event of an extended rally, ADA could test the Third Major Resistance Level at $0.8546.
A fall through the Major Resistance Levels and the pivot would bring the First Major Support Level at $0.7544 into play. Barring another extended sell-off, ADA should avoid sub-$0.75. The Second Major Support Level sits at $0.7377.
Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. ADA sits below the 100-day EMA, currently at $0.8543. This morning, we saw the 50-day EMA narrow to the 100-day EMA, delivering support. The 100-day EMA pulled back from the 200-day EMA, ADA negative.
A move through the 100-day EMA would support a return to $0.90.
This article was originally posted on FX Empire
