The Cardano price continued struggling in June as part of the overall crypto sell-off. The coin started the month trading at $1.7210. It then declined by more than 42% to $1 on June 22. It is now trading at $1.3393, which is about 33% above the lowest level during the month.
What happened? The Cardano ecosystem was relatively muted in June. The only major news was the partnership with Nervos to build the first cross-chain bridge. The developers also provided an update of the Daedalus update.
Therefore, the price action in June was mostly because of the overall performance of the crypto industry as the Federal Reserve turned hawkish and as China intensified its crackdown on cryptocurrencies. These themes will likely continue in July.
Still, there is a possibility that investors will continue to downplay their significance. For example, investors seem to be comfortable investing in stocks even as the overall tone from the Federal Reserve turns hawkish. This is evidenced by the fact that the Nasdaq 100 index has rebounded recently. Investors will also focus on the operations of Binance, the biggest crypto exchange in the world after regulators warned about it.
The hourly chart shows that the ADA price has been in an upward trend in the past few weeks. However, a closer look shows that the coin has found a strong resistance at $1.400 level. It has struggled to move above this resistance in June. This is a similar situation to Bitcoin, which has struggled to move above $40,000.
Cardano is above the ascending channel shown in black. It has also formed what looks like an inverted head and shoulders pattern. Therefore, in my view, I suspect that the coin will have a bullish breakout in July. If this happens, the next key hurdle for the coin will be the resistance at $1.4570, which was the highest level on July 21. A move above that resistance will open the possibility of Cardano rising to $1.70 in July.
On the flip side, a move below $1.1965 will invalidate the bullish view and open the possibility that the coin will retest the June low at $1.
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