Analyst Highlights Challenges Facing Cardano Price Amid ETF Delays
The Cardano (ADA) market faces challenges due to SEC delays on ETF applications, causing uncertainty. Analyst Dan Gambardello warns that ADA must maintain key price levels to ensure a bullish trend, while potential downside risks exist if market conditions diverge from expectations. Investors should approach with caution and conduct thorough research.
Recent developments surrounding Cardano (ADA) have drawn significant attention within the cryptocurrency community, particularly regarding the potential influx of institutional investments following ETF applications from Canary Capital and Grayscale. Prominent crypto analyst Dan Gambardello highlights a precarious situation for ADA amid the Securities and Exchange Commission’s recent delay in decision-making on the Canary ADA ETF application until May 29, which has tempered market enthusiasm.
In his analysis shared on March 13, Gambardello stated, “Cardano price is at war,” indicating that ADA is currently struggling to maintain its 200-week moving average, which is situated between $0.73 and $0.74. Holding above this critical level is essential for sustaining bullish sentiment. This moving average is frequently utilized to validate long-term price trends.
Gambardello further elaborated on the current price movement of ADA, which is fluctuating between the 50-week and 20-week moving averages. He highlighted that the price action resembles that observed during the 2021 bull market cycle prior to a breakout. However, he cautioned that short-term volatility could persist if the Federal Reserve fails to align with market expectations regarding interest rate adjustments.
According to Gambardello, a failure to meet these expectations could result in a potential drop to approximately $0.50, translating to over 31% downside risk based on ADA’s existing price of $0.73. For bullish market conditions, Gambardello noted that one key objective would be for ADA to maintain stability above the 200-week moving average, and subsequently break the 20-day moving average at $0.78, and the 50-day moving average at $0.80. A successful breach above these thresholds could position ADA for a rise towards $1.25, referred to as the “upper end of the bull market doors.”
In summary, Cardano (ADA) is currently navigating a challenging landscape due to delays from the SEC concerning ETF applications. Analyst Dan Gambardello emphasizes the critical nature of maintaining key moving averages to sustain bullish trends. Without meeting expectations from the Federal Reserve, ADA could face significant downward pressure. Investors are advised to remain vigilant and conduct thorough research before making investment decisions, especially with ADA’s current volatility and potential risks.
Original Source: thecryptobasic.com
Post Comment