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Cardano faced price rejection at June high near $0.379
Longs discouraged, underscoring near-term bearish sentiment
from Cardano [ADA] sharp price reversal over the weekend affected bulls. Bulls gained more than 30% after rising from $0.29 to $0.38 between July 13 and 14. But the weekend’s price drop threatens to extend and reverse any gains.
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In the meantime, Bitcoin [BTC] also had to reverse the losses incurred over the weekend. It lost $31,000 on Friday (July 14), briefly surpassing $30,000. It was trading at $30.01k at the time of writing, and any further drop below $30k could expose altcoins to additional losses.
Will the $0.3 resistance flip into support?
The Relative Strength Index (RSI) pulled out of the overbought zone and broke the 50 mark, increasing short-term selling pressure. Similarly, the On-Balance-Volume (OBV) showed a southerly trend, indicating a decrease in demand in the past few hours.
The June high corresponded to a bearish order block of $0.375 – $0.382 (red) on the 12-hour chart. So the roadblock, coupled with BTC’s sharp reversal, encouraged short sellers to access the hurdle.
At the time of writing, ADA’s price action has moved lower towards the previous resistance level of $0.3. The $0.3 level was also a March low and a critical resistance level in late June/early July.
Therefore, bulls could see a $0.3 delay if BTC fails to drop below $30,000. The conservative bullish target will be $0.337 if that is the case.
But a prolonged drop below USD 0.290 and subsequent retest of USD 0.28 will invalidate the above bullish statement.
Long positions are not recommended
Read from Cardano [ADA] Price prediction 2023-24
At the time of writing, approximately $445,000 in long positions were liquidated in the space of four hours, according to Coinglass. But short positions suffered less than $15,000 during the same period, underlining bearish sentiment in the near-term futures market.
Traders should follow BTC price action and the $0.3 level for better optimized trade setups.
This post ADA falters on June high – Bulls may consider this level
was published first on https://ambcrypto.com/ada-falters-at-june-high-bulls-can-consider-this-level/