Following China’s restriction on bitcoin mining, the cryptocurrency market has remained volatile. Bitcoin’s price is struggling to retain upward momentum, while Cardano price is also struggling to break through massive resistance.
The altcoin is hanging around $1.34 at press time, up 0.93 percent on the day. Over the last three days, ADA has lost 10% of its value as it has failed to hold the $1.40 level, which was required for a bullish conclusion.
ADA has been under some downward pressure in recent days after failing to break above the 50 percent Fibonacci extension, which also constituted the upper trendline of an ascending triangle.
Its price is battling a stack of healthy resistance levels between $1.3700-$1.3800, making it difficult to continue its recovery from weekly bottoms.
During the previous significant retreat, Cardano avoided retesting the immediate support levels of $1.10 and $1.03. If the bulls fail to defend the current level, ADA might face a dangerous decline, with another support level of $0.84 in play if it is breached.
The Relative Strength Index (RSI) is edging down within the negative zone, indicating a possible downward move.
Cardano still Has a Strong Community
Weiss Crypto Ratings recently highlighted that Cardano surpassed Bitcoin as the most widely owned digital asset on eToro US in Q2 2021.
Cardano overtook Bitcoin as the most held crypto on eToro in Q2 of 2021. Being a successful decentralized network isn’t just about strong technology. It’s also about building a community. Datapoints like these show ADA is on its way to building a strong community around it.
With the recent announcement of the debut of the long-awaited smart contracts platform Alonzo in testnets, Cardano may be positioned itself for a fantastic performance in quarter three of 2021, despite all the pessimistic trends.