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Cardano falls below the $0.70 support level as technicals indicate a possible move towards $0.60.
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ADA volume trading has declined by over 9% and options trading by 93% within 24 hours.
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SEC delayed Cardano ETF decision until July 13, adding short term pressure to ADA price.
Cardano (ADA), currently trading at $0.68, is trading below a key support level. The token’s fall occurred after it failed to maintain its price above $0.73, marking a reversal of its brief recovery at the beginning of May. Technical indicators suggest prices could continue to fall.
The daily chart shows ADA breaking below the psychological level of $0.70 and failing to reach major moving averages. Analysts use Fibonacci levels and historical reaction times to identify the $0.58-$0.65 area as the next likely zone of support. Traders may be prepared for further short-term weakness if the token does not reclaim $0.70 in the next few weeks.
Analyst Signals Normalcy for the Ongoing Dip
Crypto analyst Dan Gambardello released a statement regarding the ongoing correction. In a recent blog post, he reassured Cardano owners that the dip was “might not be over…yet”, but referred to it as a normal part market cycles. This post is in line with a broader sentiment stating that ADA’s drop is not abnormal for the current crypto landscape.
According to the analyst market declines are often expected before the beginning of an upward trend. He made this comment after sharing a YouTube video that discussed Fibonacci and moving averages, which pointed to a potential dip to $0.60. The pullback has been met with mixed reactions. There is frustration and cautious optimism.
The U.S. Securities and Exchange Commission (SEC) has also postponed the decision on the Grayscale cardano ETF proposal until July 13. The final decision should be made by October 22. ADA briefly dropped by nearly 4% after the announcement of the delay.
Derivatives volume increases as traders adjust positions
CoinGlass data shows a 9.51% drop in ADA trading volume in the last 24 hour to $1.85 Billion. Ppen interest fell by more than 1.22 percent to $828.49 millions, indicating that some traders may have left their positions after the recent pullback. Notably, ADA option trading has also decreased by 92.94%. This indicates a reduced focus of long-term risk hedging.
Cardano, despite the current market uncertainty and a $24 billion valuation, remains one of the top ten cryptos. Cardano’s re-listing at eToro, and the strong development of DeFi, maintain its relevance despite current market conditions.
RelatedWhy Crypto Market is Down today: Trade Fears and Liquidation, Technical Weakness, and Technical Weakness
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