Cardano ADA price has oscillated around the 2018 high for much of 2021, either striking resistance at the level of support. Thus, the weekly close above the price of $1.40 last week was a bullish departure from the daily rejections that dominated trading volume in the last week of June. Nevertheless, the lack of volume underpinning the price bullish event combined with no follow-through this week, and a notable layer of resistance around the price of $1.55 may project a quick reversal of fortune for ADA.

Cardano ADA price, unlike many altcoins, closed the 2Q with a 16% gain. However, the digital asset failed to close the quarter above the 2018 Cardano ADA high of $1.40 for the second straight quarter, only reinforcing the importance of the price level.

Cardano price standoff resolves higher, creates a false sense of confidence

Last week, Cardano's price recaptured the 2018 high with a weekly close above $1.40, and as a result, ADA price narratives are bullish for the first time in over a month. Nevertheless, the event was not directed by a newfound interest in the altcoin as trade volume closed at 25% of the 50-week average. 

This week Cardano ADA price action has confirmed the underwhelming interest in ADA with no follow-through, highlighting that there is no stampede to join the potential new rally despite the technical breakthrough. To be blunt, FOMO has not descended on cryptocurrency.

Adding pressure to the bullish Cardano ADA price narrative is a new layer of resistance framed by the 10-week SMA at $1.58 and the price congestion around the price of $1.55 that extends back to February. Continuing the rally into the tactically important moving average would yield just a 12% price gain from the current price.

With new, credible resistance pressing on Cardano ADA price coupled with the absence of interest above $1.40, the outlook for ADA price remains neutral. A drop below the 2018 high would not be a surprise, and under the current circumstances, it is anticipated.

A level of support to pinpoint is $1.20, which corresponds to the June 27 and July 1 low and represents a 14.5% decline from the current price. Additional Cardano ADA weakness will not be interrupted until the psychologically important $1.00, logging a 30% decline.

A weekly close above the 10-week SMA would alter the price structure and offer Cardano ADA investors a new, sustainable investment opportunity.

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