Cardano Bulls Reclaim Crucial Support, Eyeing Retest of $0.38

The Bulls have made a strong comeback in reclaiming the critical support level and are now eyeing new targets.

Huge blueish bull being petted by a boy in cowboy outfit.
Created by Gabor Kovacs from DailyCoin
  • Bulls recently pushed Cardano to break through resistance and register a double-digit gain. 
  • The performance led to investors looking to exit, allowing Bears to reclaim control and pull back the price. 
  • The Bulls have since made an impressive comeback and are eyeing new targets. 

The Bulls recently gave Cardano the much-need push to propel it past the massive sell wall at $0.3. However, their efforts were short-lived before the Bears prevailed in pulling back the price. 

With Cardano approaching critical levels, the question looms: Will the Bulls charge ahead and take ADA to new heights? Or will the Bears prevail and bring the price into their territory? 

Bears and Bulls Clash Over Cardano’s Fate

After weeks of consolidation, Cardano finally broke through its massive resistance, gaining an impressive 32% to reach $0.37 in the wake of Ripple’s landmark victory over the SEC. However, the Bulls’ initial victory proved fleeting, as mounting sell pressure from long-term investors looking to exit shifted the balance of power to the Bears. 

Cardano price chart July 19.
Cardano Price Chart. Source: CoinMarketCap.

The subsequent days saw Cardano struggling, losing support at $0.32 and revisiting $0.3. However, with the order books looking lighter than usual, the Bulls have since made a strong comeback in reclaiming the critical support level at $0.32. The upward movement has sparked hopes of a sustained bullish trend for ADA, positioning the token to set its sights on the next fundamental level at $0.38. 

The June-High of $0.38 is very important for ADA, having acted as a major barrier in previous rallies. A successful breakthrough at this level could open the door to liquidity at $0.6, depending on which camp takes control in the following weeks. 

Cardano investor sentiment.
Cardano Sentiment. Source: IntotheBlock.

At press time, Investor sentiment remained primarily bullish, as indicated by IntotheBlock data. In addition, the positive long-to-short ratio signaled growing investor interest, suggesting a favorable outlook for ADA. 

Over the next few weeks, investors will closely monitor the price action to see if Cardano successfully retests $0.38. A clear confirmation could trigger additional gains and pave the way for ADA’s ascent to the coveted $1 milestone.

At the time of writing, Cardano stood at $0.326, boasting a trading volume of $423 million and a market cap of $11.3 billion. 

On the Flipside

  • It’s worth noting that ADA is 90% down from its all-time high of $3.1 at press time.
  • Market dynamics can be unpredictable, so it is important to consider alternative perspectives and opinions when evaluating the potential future performance of Cardano.
  • The recent surge helped Cardano reclaim its ranking. Solana briefly flipped Cardano in total market cap rankings, clinching the 7th spot. 
  • The XRP-led altcoin rally sparked a wave of liquidations throughout the market, amounting to over $314 million, three times as much as when the SEC sued Binance and Coinbase. 

Why This Matters

The following weeks are crucial for Cardano Bulls, as they must overcome the resistance at $0.38. Should they fail, the Bull can reclaim control, pushing ADA to $0.3, which could consolidate for the rest of the year. 

More on Cardano

Cardano Attracts Influx of Liquidity in Hong Kong, Among Top Holdings

Read why banks are praising Avalanche:

Bank of America Heralds Avalanche: “Future of Tokenization” 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.