Cardano (ADA/USD) is looking to resume the recent downtrend following a temporary reversal from weekly lows of $1.2833 reached on Friday.
ADA price staged an impressive bounce but lost legs just shy of the $1.40 mark, as sellers return amid a barrage of attacks faced by Cardano founder, Charles Hoskinson, on Twitter.
This came after Hoskinson retweeted a year-old tweet that highlighted predictions for the network’s adoption.
Ok, so @IOHK_Charles predicted this a year back. Update:No asset on $ADA, forget 1000’s of DApps not a single dapp on $ADA, only 1-2 projects announced working on.
At the press time, Cardano price is hovering around $1.34, down 0.83% on the day. The fifth most widely traded crypto coin is losing nearly 2% on a weekly basis.
ADA/USD faces a dense cluster of healthy resistance levels, remains bearish
ADA price is struggling to extend its recovery from weekly troughs, as it faces a stack of healthy resistance levels between $1.3700-$1.3800.
Around that zone, the rising channel support-turned-resistance, 21 and 50-Simple Moving Averages (SMA) intersect on the 12-hour sticks.
Therefore, a failure to find acceptance above the latter could reinforce the bearish interests, triggering a fresh downswing towards one-week lows.
The next significant support awaits at the July 2 low of $1.2778, below which the horizontal (orange) trendline support at $1.2025 will be put to test.
Cardano’s path of least resistance remains to the downside, in light of a rising challenge breakdown confirmed on the said time frame a day before.
The Relative Strength Index (RSI) edges lower within the bearish zone, adding credence to a potential move lower.
Additionally, the bearish scenario is also backed by an impending bear cross, as the 100-SMA is inching closer towards the 200-SMA, looking to cut the latter from above.
On the flip side, ADA bulls could attempt a fresh rally towards the horizontal 200-SMA at $1.4610 should the critical supply zone around $1.3800 is taken out convincingly.
Further up, the mildly bearish 100-SMA at $1.4783 could be a tough nut to crack for the ADA optimists.