Cardano (ADA) Price Under Pressure As ADA ETF Tensions Rise!

A crypto analyst from Crypto Capital Venture just shared a new video about Cardano. The 10-minute video explains why Cardano price is at a critical point right now to his over 390 thousand subscribers.

The crypto market has seen a lot of action in recent times, with several key developments unfolding. Among the hottest topics is the status of crypto ETFs, especially in the wake of new updates from the SEC.

One crypto analyst at Crypto Capital Venture just made a new video discussing these developments. In the 10-minute segment, the analyst, known as "Dan," shares his thoughts on why Cardano is at a critical point right now to over 390,000 subscribers.

The biggest news is that the SEC has extended their review of the Grayscale Cardano ETF by 45 days. The new deadline is May 29th, 2024.

However, the analyst says not to worry about this delay. It’s normal for crypto ETFs. On March 11th, the SEC delayed over 60 crypto ETF applications. This included Solana, XRP, Dogecoin, and Litecoin.

Crypto ETF delays have been happening since 2013. Even Bitcoin faced many delays before its ETF was approved.

What ETF Approval Really Means

Dan warns viewers not to expect too much from an ETF approval. He uses Ethereum as an example. ETH got its ETF approved in May 2024. But after the approval, ETH dropped by almost 50%.

The broader economy matters more for crypto prices. Dan mentions that inflation is going down. This might lead to lower interest rates soon. He also thinks actual inflation might be lower than the official reports.

Cardano Price Battle

The analyst describes ADA’s price as being “at war” on the chart. He highlights two key price levels, which he calls the “Bull Market Doors”:

For a bull market to start, ADA needs to break above $1.25 and stay above it.

If ADA falls below the 200-week average and stays down, the price could drop to $0.5-$0.59.

Right now, ADA is testing the 200-week average. A close above this level would be good news. But a close below would likely mean more price drops in the coming weeks.

What History Tells Us

The analyst sees ADA following a pattern similar to past market cycles. In previous cycles, Cardano would usually consolidate for months before a major move up.

If history repeats, ADA might be setting up for a significant rise later this year. For short-term traders, these are the levels to watch:

A close above $0.8 could signal a price reversal. Staying below 0.73 would likely mean more downside. The next few weeks will be crucial for determining the direction of Cardano’s price in the coming months.