ADA spells trouble for the bulls as it eyes $1
- Cardano price cannot shake off the negative sentiment that it is producing.
- For a third consecutive week, ADA is set to dip lower.
- Any favorable tailwinds are missing to break current sentiment, but some buy-opportunity might come along.
Cardano price is stuck in the same global route as other major cryptocurrencies like Ethereum and Bitcoin. Any major favorable tailwinds are missing to break current selling sentiment and it does not look like buyers are interested in going long from current levels.
Cardano price needs to drop another 10% before buyers pick up some ADA
Cardano price sees that the short-selling action is very well respected on the upside. Each time ADA dips lower, it makes a false recovery the day after, only to drop below the initial low level and stay there as that support becomes resistance. This was the case for the week of July 5 and is unfolding now again.
ADA cannot seem to get above $1.21, which was the low from the week of June 28.
On the downside, Cardano price has $1.15, but that level has already been broken several times. It still looks to hold some importance as ADA tested that level last week but could not break below it.
ADA/USD weekly chart
The squeeze to the downside looks to be continuing for another week. This is due to the technical levels at $1.21 and the lack of any positive sentiment surrounding cryptocurrencies. A catalyst or any favorable tailwind is missing that could squeeze short-sellers out of their position and usher buyers back in.
Still, there are opportunities for a long. Further to the downside, Cardano price has a red ascending trend line that has already shown its importance with two confirmed tests where price action bounced off to the upside each time. Expect buyers to defend this level, which this week would be around $1.04. A critical level to watch is if this trend continues in the coming days and if Cardano gets another negative close by the end of the week.