Cardano price weakens near $0.56 as sellers cap upside below EMA resistance
Cardano struggles to break above resistance as price compresses near $0.56
Cardano (ADA) began July on a softer note, trading near $0.5626 as of Tuesday morning, down roughly 0.8% intraday. The latest price rejection from the $0.59 region continues a multi-session pattern of lower highs, with bulls struggling to break through a dense confluence of resistance just below $0.60.
Highlights
- Cardano trades near $0.5626 after rejection from short-term resistance at $0.59
- Price remains capped under 20, 50, and 100 EMAs; RSI and MACD signal fading momentum
- Support lies at $0.550, with deeper levels at $0.525 and $0.508 if selling pressure resumes
ADA remains pinned beneath its key exponential moving averages, while momentum indicators tilt bearish, signaling a fragile structure heading into the first week of the new month.
Price action stalls beneath supply zone and EMA cluster
On the 4-hour chart, ADA remains range-bound under key EMA levels. The 20-EMA at $0.5671 and the 50-EMA at $0.5701 have acted as dynamic resistance, with repeated failures to close above these thresholds. A prior attempt to rally toward $0.59 was quickly rejected at the upper Bollinger Band and a nearby supply zone between $0.58 and $0.60. Sellers continue to absorb buying pressure in this zone, preventing upward momentum.
ADAUSD price dynamics (Source: TradingView)
The broader trend, visible on the daily chart, remains bearish. Cardano has been stuck in a descending channel since April, and despite recent stabilization above $0.55, price remains under the 100-EMA and key trendline resistance. Volatility has compressed, as shown by narrowing Bollinger Bands, suggesting a potential breakout setup in the sessions ahead.
Momentum indicators point to downside risks
RSI on the 30-minute chart is currently hovering near 41, reflecting lackluster bullish activity. Meanwhile, the MACD has flipped back into negative territory after a failed crossover attempt. According to LuxAlgo’s market structure data, there is no clear break of structure (BOS) to the upside, and only minor change-of-character (CHoCH) signals have emerged—evidence of continued indecision.
If ADA closes below $0.550, downside targets at $0.525 and $0.508 come back into focus. Conversely, a sustained move above $0.588 and the 100-EMA would be required to reignite bullish momentum. Until then, rallies are likely to be capped and met with fresh selling near the $0.58–$0.60 range.
In previous Cardano analysis, ADA was noted for its failure to reclaim the $0.60 zone despite repeated intraday attempts. That dynamic remains firmly in place, with price continuing to respect descending structure and EMA resistance. As July begins, traders should watch for volume-driven moves out of the $0.550–$0.588 range to determine near-term direction.
