Emma Nelson 
Cardano price is currently encountering strong resistance as it struggles to maintain its momentum above the critical $0.70 level. This price battle comes at a time when market uncertainty is heightened by the U.S. SEC’s decision to delay the ruling on the Canary Capital ADA exchange-traded fund (ETF) application until May 29. This prolonged delay has added another layer of uncertainty to the already volatile market, leaving investors waiting for clearer guidance before making significant moves. Despite signs of whale accumulation suggesting that large investors have confidence in ADA’s potential, the price remains constrained within critical technical levels, and concerns are mounting that ADA could experience a significant drop to $0.30 if current trends persist.
Cardano Price
Cardano Price: Analysts Caution Against a Drop to $0.30
Recent price movements of Cardano have placed the altcoin in a precarious position, hovering just around the $0.70 mark. Several analysts are warning that if ADA fails to maintain this level of support, a decline toward $0.50 is possible, with the potential for even deeper losses down to $0.30. Crypto analyst Dan Gambardello pointed out that ADA is struggling to hold above its 200-week moving average (MA), which is an important technical indicator. If ADA fails to maintain support at this critical level, it could face increased selling pressure, which would likely push the price even lower. Historical patterns show that similar breakdowns in the past have resulted in sharp declines, adding weight to the concern that ADA may be vulnerable to further downside.
Gambardello also highlighted the ongoing uncertainty caused by the SEC’s delayed decision on the ETF application, describing the current situation as a “war” for ADA, as this regulatory uncertainty is keeping investors on the sidelines. Many are waiting for a clear regulatory framework before making significant moves in the market. Furthermore, Gambardello emphasized that external economic factors, such as the Federal Reserve’s policy decisions, could exacerbate the situation. If the Fed’s actions fail to meet market expectations, it could create additional volatility in the crypto market, further pressuring ADA’s price toward $0.50.
A Breakout Scenario and Potential Bullish Momentum
However, there is still hope for a potential rebound if ADA can manage to stay above the 200-week moving average and break through the $0.78-$0.80 resistance level. Gambardello suggests that this could trigger bullish momentum, potentially pushing Cardano towards the $1.25 mark. This price level is considered a critical threshold for Cardano’s price action, representing what Gambardello refers to as the “upper end of the bull market doors.” If Cardano can break above this resistance, it could open the door for further upside potential.
Technical Analysis Suggests Breakout Potential
On the technical front, Ali Martinez has pointed out that Cardano is currently forming a right-angle descending wedge pattern. This pattern often precedes a significant price movement, and if ADA breaks above the $1.20 resistance level, it could trigger a breakout to the upside. However, if the price fails to surpass this resistance, it could lead to extended consolidation or a downward move, potentially bringing ADA closer to the $0.30 support level. The breakout or breakdown of these key technical levels will be crucial in determining Cardano’s near-term price direction.
Whale Investors Show Confidence in Cardano
Despite recent volatility in the market, large investors, or “whales,” have been increasing their positions in Cardano. On-chain data reveals that wallets holding between 1 million and 10 million ADA tokens have accumulated a total of 180 million tokens over the past week. This suggests that institutional investors are showing strong confidence in Cardano, which could help stabilize the price or lead to an upward trend as whale accumulation often reduces circulating supply.
Impact of SEC Delay on Market Sentiment
The ongoing delay in the SEC’s decision regarding the Grayscale Cardano ETF is contributing to the market’s uncertainty. ETF approvals typically influence investor sentiment, and the prolonged wait for clarity has left the market cautious. The SEC has also delayed decisions on several other crypto ETFs, including those for Solana, XRP, Dogecoin, and Litecoin, adding to the overall regulatory uncertainty that the cryptocurrency market is currently facing.
In addition, there are some more speculative predictions circulating among the Cardano community. For example, The Simpsons, a well-known entertainment source, shared a bold prediction that Cardano could reach as high as $36, sparking debates and discussions among investors. While this prediction is highly speculative, it reflects the excitement and optimism that still exists within the Cardano ecosystem, despite the market’s challenges.
In conclusion, while Cardano’s price remains in a vulnerable position at $0.70, there is hope for a rebound if the key technical levels hold. However, regulatory uncertainties, external economic factors, and ongoing whale activity will likely play a crucial role in determining Cardano’s future price action. The coming weeks will likely prove critical in shaping the altcoin’s trajectory.
