Cardano’s price fell -7.74 percent last week, putting it back below the 2018 high of $1.40.
The green coin is currently experiencing its greatest daily volume since June 25.
If selling pressure in the cryptocurrency market picks up, the ADA 200-day simple moving average (SMA) at $1.10 could provide support.
With a -5.45% loss and a daily closure below the 2018 high of $1.40, Cardano price broke away from a bearish rising wedge pattern on June 8. After eventually recapturing $1.40 on July 3, ADA had a swift reversal of fortune. Without a daily close over $1.40, the altcoin is vulnerable to testing the 200-day SMA or the June 22 bottom, as it has been in the past.
Cardano price managed a rally from the June 22 low to July 7, culminating in a bearish rising wedge pattern that successfully triggered on July 8, pushing ADA below $1.40 after five days of holding the important level. Inability to show relative strength in a challenging market environment reflects waning enthusiasm in Cardano’s “green story.”
The measured move price is $0.99, which represents a 24 percent drop from the current price. A daily close below the $1.21 low set on July 1 would be needed to establish a bearish conclusion for Cardano pricing.
The 200-day SMA at $1.10 and the 61.8 percent Fibonacci retracement of the 2020-2021 gain at $1.00 are the only viable ADA support levels below $1.21. If the June 22 low fails to hold, additional important support levels include $0.92 on May 19 and $0.89 on April 23. On the weekly chart, there are no interest-bearing support levels until the 50-week SMA at $0.72.
Daily ADA/USD chart
A bullish ADA forecast requires a daily closure above $1.40, or a weekly finish above $1.40 for more cautious market participants. If successful, the 50-day SMA at $1.47, the February 27 high of $1.54, and the April 14 high of $1.57 will provide significant resistance.
Cardano’s energy requirements are far lower than those of Bitcoin’s Proof of Work (PoW) blockchain architecture, making it a green token and an environmental pioneer in the blockchain world. Cardano’s price, on the other hand, has not reacted favorably to the spotlight, swinging in lockstep with the larger market. Until a semblance of relative strength can be maintained, the digital asset is no better than most cryptocurrencies as an investment choice./n
