Cardano ada price action is hard stuck between two high-time frame-resistance level barriers that are likely to restrict its movement. On a lower time frame as well, ADA price seems to be trading between a short-term support and a resistance barrier. However, a closer look reveals that the so-called “Ethereum-killer” Cardano is likely to sweep for sell-stop liquidity before establishing a directional bias.

Cardano price hunts for liquidity

Cardano ADA price flipped the $0.776 weekly support barrier into a resistance level on May 7 as it crashed 58% by the second week of May. While the downswing came close to knocking on the weekly support at $0.380, it did not.

Regardless, the price recovery that followed set equal lows on June 13 and 14 at $0.435 as ADA price rallied 25%. However, the run-up was premature and got rejected by the intermediate hurdle at price of $0.550.

This rejection is likely to push Cardano ADA price lower and sweep the equal lows at $0.435 to collect the sell-stop liquidity. Doing this will signal that the downward pressure is exhausted and that ADA price will climb higher.

Therefore, investors that are impatient will get chopped.

After the liquidity objective is completed, market participants can expect Cardano ada price to rally 26% and tag the $0.550 level barrier. If the bullish momentum is enough, ADA price might flip this hurdle into a support floor.

Doing this will allow Cardano ada price to make a run at the June 8 swing high at $0.669 level. This move, however, will constitute a 54% gain from $0.435.

On the other side, if Cardano ada price produces a daily candlestick chart close below the weekly support level at price of $0.380, it will invalidate the bullish thesis for Cardano ADA. This development could crash Cardano ada price by 26% to the $0.278 barrier.

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