- \n
- Cardano price is stuck trading between the $0.470 to $0.553 barriers.<\/strong><\/li>\n
- Bullish investors need to exercise caution as a sweep of the equal lows at $0.435 is plausible.<\/strong><\/li>\n
- A daily candlestick close below the weekly support level at $0.380 will invalidate the bullish thesis for ADA.<\/strong><\/li>\n<\/ul>\n
Cardano price action is hard stuck between two high-time frame-resistance barriers that are likely to restrict its movement. On a lower time frame as well, ADA seems to be trading between a short-term support level and a resistance barrier. However, a closer look reveals that the so-called \u201cEthereum-killer\u201d is likely to sweep for sell-stop liquidity before establishing a directional bias.<\/p>\n
Cardano price hunts for liquidity<\/strong><\/h2>\n
Cardano price flipped the $0.776 weekly support barrier into a resistance level on May 7 as it crashed 58%<\/a> by the second week of May. While the downswing came close to knocking on the weekly support level at $0.380, it did not.<\/p>\n
Regardless, the recovery that followed set equal lows on June 13 and 14 at $0.435 as ADA rallied 25%. However, the run-up was premature and got rejected by the intermediate hurdle at $0.550.<\/p>\n
This rejection is likely to push Cardano price lower and sweep the equal lows at $0.435 to collect the sell-stop liquidity. Doing this will signal that the downward pressure is exhausted and that ADA will climb higher.<\/p>\n
Therefore, investors<\/a> that are impatient will get chopped.<\/p>\n
After the liquidity objective is completed, market participants can expect Cardano price to rally 26% and tag the $0.550 barrier. If the bullish momentum is enough, ADA might flip this hurdle into a support floor.<\/p>\n
Doing this will allow Cardano price to make a run at the June 8 swing high at $0.669. This move, however, will constitute a 54% gain<\/a> from $0.435.<\/p>\n
![\"ADA\/USDT](\"https:\/\/editorial.fxstreet.com\/miscelaneous\/ADAPERP_2022-06-17_07-23-24-637910308059104822.png\")
<\/a><\/p>\nADA\/USDT 1-day chart<\/small><\/p>\n
On the other hand, if Cardano price produces a daily candlestick<\/a> close below the weekly support level at $0.380, it will invalidate the bullish thesis for ADA. This development could crash Cardano price by 26% to the $0.278 barrier.<\/p>\n
\n - Bullish investors need to exercise caution as a sweep of the equal lows at $0.435 is plausible.<\/strong><\/li>\n