Cardano (ADA) is going through a rough patch after the U.S. Securities and Exchange Commission (SEC) decided to delay its ruling on the Canary Capital ADA exchange-traded fund (ETF) until May 29.
Because of this, investors are unsure about what will happen next. Crypto analyst Dan Gambardello says the price of ADA is “at war,” meaning it’s struggling to stay stable.
Before this, many people were excited about the possibility of big investors putting money into ADA through this ETF. If approved, it would make it easier for large financial institutions to invest in Cardano without buying it directly.
However, the SEC’s delay has put that excitement on hold. Gambardello, in a video, pointed out that ADA’s price is now trying to stay above its 200-week moving average (MA), which is between $0.73 and $0.74. He explained that closing and holding above this level would be critical, meaning if the price stays above this range, it could be a good sign for investors.
Right now, ADA’s price is moving between two important price levels: the 20-week and 50-week MAs. Gambardello said this is similar to what happened in 2021 before ADA’s price shot up. But just because it happened before doesn’t mean it will happen again.
He warned that if the Federal Reserve (which controls interest rates) doesn’t do what the market expects, we could see more price drops. “If the market doesn’t get what it wants from the Fed, in the very short term, we can easily see the volatility of crypto continue to the downside,” he said.
If things don’t improve, ADA’s price could fall to around $0.50, which would be a 31% drop from its current price. But if it can stay above the 200-week MA and move past $0.78 and $0.80, Gambardello believes it could rise to $1.25, which he calls “the upper end of the bull market doors.”
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