The Cardano price is higher by +6.50% to $1.7775. The recent strength suggests it could soon resume this year’s bull run.
Over the last week, Cardano has continued to recover from the sell-off in May. Although the price is yet to break above $2.0000, some encouraging signs suggest it soon might.
Weekly Performance: +12.50%
Weekly Range: $1.5038-$1.8944
Trading volume has been relatively low over the last 7 days. Coinbase data shows ADA as its 4th most traded asset behind Bitcoin, Ethereum, and Polygon.
Trading in ADA accounted for 5.2% of the total exchange volume in the last 24 hours.
On Thursday, ADA looked destined to test the $2.00 mark. However, Elon Musk’s Bitcoin break-up tweet derailed the rally, sending the Cardano price down -15% from $1.8900 to $1.6080.
The initial shock lower was soon reversed, and ADA’s recent uptrend is still firmly intact. However, since the huge decline on May 19th, ADA has struggled to break through a resistance band between $1.8300 and $1.9800.
Following each previous failure, the Cardano price has suffered a sharp correction. On a positive note, the rate of decline decreased each time. This has resulted in a rising trend line from the 23rd of May low at $1.0472.
The most recent test of the trend was yesterday, and so far, the line has done its job. Today, the trend is situated at $1.6320, which becomes the first level of support.
As long as ADA stays above this line, I will maintain a bullish outlook. However, cryptos are becoming very skittish and sensitive to headlines. On that basis, the road higher may not be a straight line.
If the price breaks below the trend line, it will cancel my immediately bullish view and likely lead to a steeper decline.
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