The Cardano (ADA) network has been hit by a wave of bearish sentiment following charges filed by the United States Securities and Exchange Commission (SEC) against Binance and Coinbase Global for listing unregistered securities. As a result, the ADA price is currently retesting crucial support levels, leaving the possibility of a strong rebound or further capitulation in the coming weeks.
ADA Price Struggles to Recover
According to seasoned crypto trader TradingViewDemiGod, Cardano’s price failed to reach a perfect recovery point of approximately 30 cents, indicating a constant defense by bears. This observation implies that unless the Cardano bulls take charge and push beyond $0.30, ADA price is likely to continue its decline, potentially dropping towards 24 cents.
Analyst Predicts ADA Price Range and Reversal
TradingViewDemiGod further explains that a strong rebound from the current level could result in a consolidation between $0.24 and $0.30 for a few days. However, breaking above $0.30 would suggest a potential end to the decline in the near term. If buyers manage to drive the price above this level, ADA could rise towards the 20-day EMA ($0.32) and subsequently target the 50-day SMA ($0.36), according to the analyst’s note.
Also Read: Has Cardano Reached Its Final Bottom? ADA Price Prepares For A Bullish Reversal – Coinpedia Fintech News
Technical Difficulties Hold Back Cardano
In the midst of the SEC’s charges, Cardano developers might encounter technical difficulties in their efforts to promote the underlying blockchain. The SEC argues that the network has been involved in the sale of unregistered securities, raising concerns about the legitimacy of Cardano’s ICO and the promises made to investors regarding software developments.
Two of the blogs on which the SEC relies are from late last year. Apparently they gave buyers of ADA from 2016 to 2021 who could time travel an expectation of profits from the efforts of those trying to add functionality to the Cardano blockchain during that period. /6
— bill morgan (@Belisarius2020) June 10, 2023
