Cardano investors wonder whether resistance can prevent ADA from retesting $2.30

Cardano is squeezed between a descending short-term trend line and two support levels.
Buyers remain in control of price action and are trying to overcome the $2.20 marker.
Rally still looks solid with more upside to come.

Cardano price (ADA) is still very much in good health and running higher. However, ADA has been forming a downward sloping cap on its price action. Price is getting squeezed with lower highs, but support is not budging and is defending profits made.

ADA bulls defend profits above $1.90 with knives between their teeth

However, price action in Cardano is very choppy and not for the nervous investors who shake with every dip that happens. The monthly R3 resistance level got broken to the upside last week but had to give way after three retests. The psychological $2 level could not be of any service. Thus price action had to look lower for some support.

Buyers flocked in to defend profits and add to their positions at $1.89. A level that formed a double top between May 9 and May 21. That level was a good reason for buyers to push the price back above $2. The squeeze is continuing, however, and it will be essential to see if ADA can move higher and break the ascending red trend line forming a cap for more upside.

ADA/USD daily chart

With the current favorable tailwind in cryptocurrencies fading, expect a retest possible of first the R3 monthly pivot around $2 and next to that supporting level at $1.89. The question is whether buyers will defend that level again or offload their longs above the R3 resistance level.

Any correction further down on a break below that $1.89 could open the door for a violent reaction toward $1.50 as there is not much incentive in the way. Expect sellers to take over and buyers to flee their long positions though if ADA dips below $1.89 for a second time.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.