Here’s why $0.3 is ADA’s recovery pain point
ADA bulls are stuck at the $0.3 roadblock again, strapping the H4 market structure into a bearish grip - what's next?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ADA’s recovery stalled at the $0.3 hurdle again.
- The funding rate fluctuated in the past few days.
The US SEC labeling Cardano [ADA] as security in early June is still weighing over its price performance. The labeling saw ADA drop from about $0.38 to $0.22, shedding over 40% of its value. Although ADA attempted price reversal amidst BTC’s sharp recovery, the price is yet to climb above $0.30.
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In the meantime, BTC’s pierce consolidation above $30k continues, which could imply a bullish sentiment on one hand but a possible pullback on the other.
Buyers’ exhaustion at $0.3?
The H4 market structure, like the D1 price chart, was bearish at the time of writing unless ADA zoomed past $0.3. Nevertheless, a candlestick session close above $0.3 will only be a bullish intent and not a guaranteed rally.
Most importantly, the $0.3 is a March low and a bearish market structure breaker. That makes it a crucial resistance level for near-term bulls. So far, the recovery from 10 June hasn’t broken the bearish market structure. Notably, ADA has been rejected four times at $0.3, further highlighting buyer exhaustion at the level.
Hence, sellers could extend gains to $0.26 if the roadblock persists. That could leave bulls with only two options – wait for a retest of $0.26 support or a pullback retest at the breakout level of $0.3 for buying opportunities.
Meanwhile, RSI and MFI eased above the median mark. In particular, MFI chalked a sideways movement, suggesting a likely narrow price consolidation below $0.3 with a potential clear direction from Monday (3 July).
Similarly, the CMF was above the zero mark, denoting positive capital inflow for ADA.
The funding rate fluctuated
How much are 1,10,100 ADAs worth today?
From 10 June, ADA’s funding rates wavered in Binance Exchange, which could limit a strong recovery capable of bypassing the $0.3 hurdle.
However, the negative sentiment waned, as shown by the rising weighted sentiment (blue). Also, the 90-day Mean Coin Age rose, denoting network-wide accumulation of ADA. These could be a boon for bulls, but traders should track BTC price action for optimized setups.
