Here’s why $0.3 is ADA’s recovery pain point

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• ADA’s recovery stalled at the $0.3 hurdle again.
• The funding rate fluctuated in the past few days. 

The US SEC labeling Cardano [ADA] as security in early June is still weighing over its price performance. The labeling saw ADA drop from about $0.38 to $0.22, shedding over 40% of its value. Although ADA attempted price reversal amidst BTC’s sharp recovery, the price is yet to climb above $0.30. 

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In the meantime, BTC’s pierce consolidation above $30k continues, which could imply a bullish sentiment on one hand but a possible pullback on the other. 

Buyers’ exhaustion at $0.3?

Source: ADA/USDT on TradingView

The H4 market structure, like the D1 price chart, was bearish at the time of writing unless ADA zoomed past $0.3. Nevertheless, a candlestick session close above $0.3 will only be a bullish intent and not a guaranteed rally. 

Most importantly, the $0.3 is a March low and a bearish market structure breaker. That makes it a crucial resistance level for near-term bulls. So far, the recovery from 10 June hasn’t broken the bearish market structure. Notably, ADA has been rejected four times at $0.3, further highlighting buyer exhaustion at the level. 

Hence, sellers could extend gains to $0.26 if the roadblock persists. That could leave bulls with only two options – wait for a retest of $0.26 support or a pullback retest at the breakout level of $0.3 for buying opportunities. 

Meanwhile, RSI and MFI eased above the median mark. In particular, MFI chalked a sideways movement, suggesting a likely narrow price consolidation below $0.3 with a potential clear direction from Monday (3 July). 

Similarly, the CMF was above the zero mark, denoting positive capital inflow for ADA. 

The funding rate fluctuated

Source: Santiment 

How much are 1,10,100 ADAs worth today? 

From 10 June, ADA’s funding rates wavered in Binance Exchange, which could limit a strong recovery capable of bypassing the $0.3 hurdle.

However, the negative sentiment waned, as shown by the rising weighted sentiment (blue). Also, the 90-day Mean Coin Age rose, denoting network-wide accumulation of ADA. These could be a boon for bulls, but traders should track BTC price action for optimized setups.