Cardano (ADA) is experiencing significant price fluctuations after the U.S. Securities and Exchange Commission (SEC) postponed its decision on the Canary Capital ADA exchange-traded fund (ETF) until May 29. The delay has left investors uncertain about the token’s future, with crypto analyst Dan Gambardello describing ADA’s price as “at war,” signaling its struggle to maintain stability.
Previously, many had hoped the approval of the ETF would attract large institutional investors to ADA, allowing them to invest in the cryptocurrency without purchasing it directly. However, the SEC’s delay has dampened this optimism.
Gambardello pointed out that ADA’s price is now trying to maintain a position above its 200-week moving average (MA), which ranges between $0.73 and $0.74. He emphasized that holding above this level would be crucial for the token’s prospects. If ADA continues to trade within this range, it could indicate positive momentum for investors.
Currently, ADA is fluctuating between its 20-week and 50-week MAs, a pattern that Gambardello noted was similar to previous behavior in 2021 before the price surged. However, he cautioned that past performance does not guarantee future results.
The analyst also warned that potential missteps by the Federal Reserve, especially regarding interest rate decisions, could trigger further price declines. “If the market doesn’t get what it wants from the Fed, we could see more volatility, with prices moving downward,” Gambardello explained.
In the worst-case scenario, ADA’s price could drop to around $0.50, marking a 31% decline from its current position. On the other hand, if it can maintain its standing above the 200-week MA and surpass key resistance levels at $0.78 and $0.80, Gambardello sees the potential for the price to rise to $1.25, signaling the “upper end of the bull market doors.”
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