Cardano (ADA) Price Analysis

• Cardano (ADA) is currently facing a critical price level, with its 200-week moving average acting as a key support.
• Crypto analyst Dan Gambardello warns that ADA might drop to $0.50 if market conditions deteriorate.
• A breakout above $0.78 and $0.80 could propel ADA towards $1.25 in the next bullish move.

Cardano (ADA) has been attracting attention due to expectations of institutional investment following ETF applications from Canary Capital and Grayscale. However, excitement diminished when the SEC delayed its decision on the Canary ADA ETF until May 29, leading to market uncertainty.

In light of these developments, analyst Dan Gambardello suggests that ADA’s price is at a crucial point. He emphasizes that the asset must maintain key support levels to sustain its bullish momentum, while external factors like Federal Reserve policy decisions could impact its short-term path.

Will Cardano Hold Its Key Support Levels?

Gambardello points out that ADA is struggling to stay above its 200-week moving average (MA), which currently ranges between $0.73 and $0.74. This level is essential for confirming a long-term bullish trend. Additionally, ADA is trading between its 20-week and 50-week MAs, similar to a pattern observed in the 2021 bull market before a breakout.

However, if market expectations for a Federal Reserve interest rate cut are not fulfilled, ADA might see a sharp decline. In that case, a drop to $0.50—over 31% lower than the current price—could be on the table.

Conversely, ADA bulls need to witness a price break above $0.78 and $0.80 to spark a move toward $1.25, which Gambardello deems as “the upper end of the bull market doors.”