Cardano Faces SEC SetbackWill ADA Price Hold or Plunge?
- The Securities and Exchange Commission (SEC) postponed the decision on the Canary Cardano Exchange-Traded Fund (ETF) until May 29.
- Dan Gambardello warns ADA must close above $0.73-$0.74 to stay bullish.
- Alex Becker predicts ADA could rise 4-5x if market stabilizes.
Cardano (ADA) has gained attention as investors anticipate institutional capital inflows following ETF applications submitted by Canary Capital and Grayscale. Market optimism weakened after the U.S. Securities and Exchange Commission (SEC) postponed its decision on the Canary ADA ETF application, shifting the deadline to May 29.
The imposed regulatory pause has placed ADA in a difficult spot, raising doubts among analysts about its capacity to maintain momentum. Crypto analyst Dan Gambardello characterizes ADAs price as being in a fierce battle, stating, Cardano price is at war. On March 13, he highlighted ADAs ongoing challenge with its 200-week moving average, hovering between $0.73 and $0.74.
Gambardello stressed the importance of surpassing this level for sustaining a bullish outlook. Historically, the 200-week moving average has served as a significant marker for long-term market trends. Dropping beneath it, however, may indicate possible declines ahead.
Cardano Faces Key Moving Average Battle
ADAs price fluctuates between the 50-week and 20-week moving averages, mirroring a pattern seen in the 2021 bull market. However, Gambardello cautioned against expecting history to repeat. Market dynamics, especially those shaped by Federal Reserve policy shifts, might lead to a temporary downturn.
If the market doesnt get what it wants from the Fed, in the very short term, we can easily see the volatility of crypto continue to the downside, Gambardello explained. He warned that a dip to around $0.50 remains possible, a steep 31% drop from its current price of $0.73.
Bullish momentum might make a comeback if ADA manages to surpass crucial resistance points. Gambardello highlighted that breaking past the 20-day moving average of $0.78, along with the 50-day moving average of $0.80, could pave the way for a significant uptrend. Should these levels be cleared, ADA could potentially surge toward $1.25a price he referred to as the upper end of the bull market doors.
Analyst Alex Becker Predicts Major Cardano Surge
While certain traders continue to tread carefully, market analyst Alex Becker holds a more positive outlook. Speaking on a YouTube podcast on March 11, he expressed the view that, once market conditions settle, the cryptocurrency has the potential to surge by four to five times its current value.
According to him, the current dip presents a golden opportunity for investors willing to hold long-term. He compared it to Bitcoins 25% crash from its all-time high and the significant corrections during the FTX collapse and the COVID-19 pandemic.
Although Becker had previously criticized Cardano, he now considers ADAs price to be ridiculously low, encouraging investors to gather holdings before the next surge. In his view, as the market recovers, assets with strong fundamentals will be at the forefront of the upcoming bullish phase.
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Read more: https://www.tronweekly.com/sec-delay-puts-cardanos-rally-at-risk/
Text source: TronWeekly
