Why retail traders are uninterested in the current Cardano price

Cardano price is signaling a lack of interest. If market conditions persist, bears could push price down in a sweep-the-lows liquidation.

Cardano price faces resistance

Cardano price failed to penetrate through the halfway barrier of a Constance Brown-style parallel trend channel, conveying a lack of bullish confidence. The trend channel median line (which influenced the Cardano price since August 2021) is generally a tool for early buyers to take bottom-catching risks within a downtrend. The bears have consistently rejected the Cardno price at the median line since its first reacquaintance with the ADA price occurred last week near $0.59.

Cardano price currently auctions at $0.52 as the smart contract alternative token hovers between the 8- and 21-day Simple Moving Averages (SMA). Since July 13, Cardano price has managed to rally 48%. Amidst the uptrend rally, the Volume Profile Indicator shows a concerning lack of bullish presence. Although the Cardano price’s uptrend still looks intact, it could be severely weakened and primed for a Smart Money sell-off. 

ADA/USDT 1-Day Chart

Traders should be very cautious with the ADA price. Currently, a ‘sweep-the-lows’ event is in the cards, with bearish targets at $0.38 and $0.34. Invalidation of the bearish thesis will be a breach of the upper end of the descending parallel channel currently positioned at $0.70. If the bulls can breach this barrier, a rally towards $1.20 would be on the table resulting in up to a 140% increase from today's current market value.

In the following video, our analysts deep dive into the price action of Cardano, analyzing key levels of interest in the market. -FXStreet Team