Cardano (ADA) price has finally turned red after six consecutive weeks of uptrend. The pullback comes as the digital asset failed to break above a key resistance level on its chart. Nevertheless, the coin remains 74% up from the yearly lows.
On Wednesday, ADA price slid by a few points as the $38k resistance resulted in another rejection in BTC price. This caused a pullback in the altcoin market but Cardano remained somewhat resilient.
At press time, the leading smart contract asset was down only 0.05% as the price consolidated below a major high timeframe resistance of $0.406. This resistance has been mentioned in my multiple Cardano price forecasts and bulls need to break above this level to explore higher prices.
The daily ADA/USD chart gives a better understanding of the price action. There appears to be a bearish divergence on the Relative Strength Index, which is also confirmed by the Money Flow Index. Such divergences usually develop on the local market tops.
