Cardano ADA's price has been entangled with the 50 four-hour and 200 four-hour simple moving averages over the last day, but ADA remains on pace to close May with a double-digit advance and above the 2018 high for the first time in four tries. Cardano ADA is being confronted with broader market volatility, but it remains well-positioned to be one of the leading digital coin moving forward.

In the latest CoinShares Digital Asset Fund Flows Weekly Trading Report, digital assets saw net financial institutional outflows for the second consecutive week, totaling $97 million and marking a net record for outflows. To provide perspective, it represents just 0.2% of total assets under management and pales in comparison to the total YTD inflows of $5.5 billion.

Cardano price stuck in minor turbulence

The report did show altcoin inflows totaling $27 million, with Cardano ADA registering the largest institutional inflows at $10 million. It was the second consecutive week of Cardano ADA inflows, lifting YTD inflows to $24 million for Cardano financial institutional investment products. Coinbase suggested that the ADA bullish inflows may “represent investors actively choosing proof of stake coins based on environmental considerations.”

On May 25, ADA price emerged from an inverse head-and-shoulders pattern formation on the four-hour chart but failed to provoke emotion and commitment from investors, leading to the ongoing price pullback.

The price pullback has not undercut the ADA price low of the right shoulder of the formation at price of $1.42, implying that the breakout remains active at the time of writing. Moreover, if Cardano ADA does sell down further, the 2018 high will be a formidable support level and prompt a strong rebound, despite any residual selling pressure in the market.

The Cardano price breakout resumption would first find resistance at the 61.8% Fibonacci retracement of the May crash at a price of $1.69, followed by a cluster of shadows going back to May 7, around $1.79-$1.89. Further resistance level emerges at the junction of the 78.6% retracement support level at $1.99 with the psychologically important $2.00.

If Cardano's price trades below the shoulder low at a price of $1.42, it could press ADA to test or slightly undercut the 2018 high at $1.39. A monthly close-around price of $1.35 would leave the green token with a massive long-legged Doji pattern level, signifying equilibrium between buyers and sellers and a heightened level of indecision. 

Interestingly, the latest IntoTheBlock In/Out of the Money Around Price data shows a large cluster of resistance, formed by 112.62k addresses holding 2.68 billion Cardano ADA at an average price of $1.70.

The ADA average price falls right on the 61.8% retracement level of the May correction, suggesting that a renewal of the price rally could end before it gets started.

Conversely, the support clusters are minor in size until the $1.31-$1.36 between price range where 94.54k addresses hold 1.40 billion Cardano ADA at an average price of $1.34, indicating that a minor burst in selling could close Cardano price below the 2018 high for the fourth consecutive month.

Environmental considerations have captured the interest of cryptocurrency investors due to the notable impact of Crypto mining has on the earth. Musk was instrumental in creating the message when he decided that Tesla would no longer accept Bitcoin BTC as a payment method because of the heavy power usage, primarily derived from fossil fuels. For Cardano, an ecosystem designed to be environmentally friendly, the awareness is a bullish inflection point for Cardano growth and will reinforce print a period of broader market weakness.

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