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Cardano price needs to close above $0.26 to confirm resistance is broken

  • Cardano price continues to lag, trading sideways and living below $0.26 for almost two weeks as altcoins move north.
  • Although momentum is rising, ADA downside potential remains high with a 5% slump in sight toward the floor price of $0.2397.
  • A break and close above $0.26 would invalidate the bearish outlook.

Cardano (ADA) price is among the worst performers in the altcoin community, stuck within a range for around two weeks that has ADA stunted and moving horizontally. The price action is unorthodox considering the network’s total value locked (TVL) reflects a positive surge from decentralized applications. As reported, ADA topped the charts among blockchains on metrics of development activities.  

Also Read: Cardano price tests main support for the fifth time as ADA fizzles out towards its bottom

Cardano price stalls with $0.26 intact

Cardano (ADA) price continues in its horizontal slide into the weekend, trading with a bearish bias with the prospect of further losses to come. For a change of phase, however, a supply barrier extending from $0.2590 to $0.2692 needs to be broken.

Meanwhile, the Relative Strength Index (RSI) remains below the 50 level, alongside a lagging Awesome Oscillator (AO) that remains in the negative territory. With this, the odds favor the downside.

Increased selling pressure could see Cardano price drop 5% to retest the floor price at $0.2397. In the dire case, the slump could extend for ADA to sweep buy-side liquidity below the aforementioned level.

ADA/USDT 3-day chart

On the flipside, if sidelined investors come in, Cardano price could pull north, breaching the $0.2600 barricade to confront the supply barrier mentioned above. A decisive flip of this order block into a support floor, rendering it a bullish breaker, would invalidate the bearish thesis.

It is worth mentioning that the RSI has deviated to the north, suggesting rising momentum. Bulls must increase their buying power, with the RSI flipping above 50 likely to give them a fighting chance. 

 

Author

Lockridge Okoth

Lockridge is a believer in the transformative power of crypto and the blockchain industry.

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