With regulatory oversight leveraging increased power in the crypto market, the ADA token by Cardano has been traversing uncertain terrains. It was among the 64 cryptos that the US Securities and Exchange Commission (SEC) alleged to be securities earlier this month, leading to a spill-over effect of anxious investors.
While the SEC’s actions aimed at Binance and Coinbase — two highly influential exchanges — may heighten regulatory transparency, they have catalyzed market instability. Consequently, this scenario saw the price of Cardano tumble from its peak of $0.45 in May to $0.22 by June 10. Establishing a substantial trend reversal beyond $0.30 is now proving to be daunting, with ADA’s current price hovering around the $0.275 mark. The fear of loss amplifying back to $0.22 looms larger.
Adding to the existing market perturbation is the popular trading app Robhinhood, which delisted ADA along with SOL and MATIC from its tradable assets. Many are correlating this move to the SEC’s claim of these being security tokens. It is crucial to note that Robinhood users can still engage with 15 other cryptos, including Bitcoin, Ethereum, and Doge.
These unfolding events lend weight to a pressing question: Where is the Cardano price heading post these ripple events? ADA price graphs and predictions have ignited mixed sentiments among traders and investors. The Moving Average Convergence Divergence (MACD) indicator’s persistent ‘buy’ signal could hint ADA’s recovery from a low of $0.22. But breaching the formidable resistance at the $0.30 parameter could strengthen the bearish hold.
With ADA consistently under all key moving averages such as the 50-day EMA, 100-day EMA, or the 200-day EMA, the market seems to be navigating towards an extended downturn. While Cardano Bulls may strive to abate the losses within the $0.25 to $0.30 limit, traders mulling over new buy orders should factor in the volatility. They must tread carefully until ADA’s uptrend exhausts at $0.22 or rebounds above $0.30.
Cardano’s pricing journey seems to be intertwined with roadblocks and catalysts, all of which make this an interesting, albeit risky, arena for crypto enthusiasts. It is essential to discern each market shift in detail before investing in any crypto asset, negating chances of personal financial loss.
Source: Coingape
