The ADA price is having a tough time breaking above $1.5000. Sadly, the task may have become even tougher. Cardano now desperately needs a bullish catalyst.
Cardano is trading marginally higher at $1.3622, up $0.013 (+1.01%).
For the moment, Cardano appears rooted to the spot as the number 5 ranked cryptocurrency. Binance coins’ seven-day 10% gain has lifted its market cap to $49.7 billion, which leaves ADA almost $7 billion adrift of BNB’s fourth-place slot.
Furthermore, the Cardano price is facing severe headwinds in its quest to recover upside momentum.
the ADA price is locked between robust resistance and support levels that restrict its movement to a broad $1.0000- $1.50000 trading range.
Looking at the daily chart, we see a long-term uptrend supports the price around $1.2000. Additionally, the 200-day moving average is visible at $1.1060. And finally, a strong rising trend from February at $0.9844 completes the sturdy support.
However, the 50 and 100 DMA’s offer obstacles on the upside. Despite rallying 55% from the 22nd of June’s $0.9891 low, the ADA price has struggled to clear the 100 DMA.
Furthermore, the 50 DMA at $1.4735 is now side by side with the 100 at $1.4636, reinforcing the difficulty ahead. Moreover, the trading volume has been notably light since the start of June, which indicates a lack of buying interest around these levels.
For now, the ADA price will likely remain within this trading band. However, should Cardano punch through $1.4740, the bulls may take it as high as the June 3rd, $1.8900 high. Although, presently, it’s difficult to predict an event that will kick-start this rally.
Bulls should therefore remain patient for the time being. However, should ADA breach the support at $0.9891, those same bulls may be forced to liquidate long positions. In this event, the price would target the $0.7929, February 22nd low.
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