Cardano price momentum is struggling to protect the $0.550 support as it stays on course to register the third successive daily loss. The ADAUSD pair traded at $0.552 as of press time, up by a marginal 0.26%, with the 24% drop in trading volume signaling a weakening upside momentum. The crypto coin’s fundamentals are weak relative to the broader crypto market, denoted by its 0.44 correlation with market bellwether, Bitcoin.
In the absence of key developments in the Cardano chain ecosystem, investors have opted to look for better-rewarding opportunities elsewhere as they wait for the SEC’s decision making on spot ETF applications. The coin currently trades below key moving averages, with the 7-day MA having crossed below the 30-day and 50-day MA. That signals near-term pressures that will likely persist as long as Cardano price action remains below $0.600. Furthermore, breaking below $0.500 could create a sour sentiment that could potentially extend the downside.
However, despite the multi-week decline, ADA has historically shown a propensity to undergo extended periods of accumulation, which often transition to strong bullish breakouts. Securities and Exchange Commission (SEC) will announce its decision on Grayscale’s Cardano spot ETF application on July 15, and that could inject a fresh impetus into the coin’s momentum. Nonetheless, near-term gains are likely to be limited, with Open Interest having risen by a miniscule 0.90% in the last 24 hours to $345 million.
Cardano Price Prediction
Cardano price pivot mark is at $0.557 and the momentum currently favours the sellers to be in control. The will likely find initial support at $0.546. However, if the sellers extend their control, the action could go lower and test $0.538.
Alternatively, the price could break above $0.557 and shift the momentum to the upside. That could see initial resistance encountered at $0.568. Breaking above that level will invalidate the downside narrative. In addition, the resulting momentum could push the price higher and test $0.580.
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