- Cardano drops below $0.70 support as technicals point to a possible move toward $0.60.
- ADA trading volume declined by more than 9%, and options trading declined by 93% in 24 hours.
- SEC delayed Cardano ETF’s decision to July 13, adding short-term pressure on ADA price.
Cardano (ADA) is trading below a significant support level, currently around $0.68. The token’s decline happened after its various attempts to maintain above $0.73 failed, marking a reversal from its brief recovery in early May. Technical indicators suggest that prices may continue to decline.
The daily chart shows ADA failing at major moving averages and breaking below the $0.70 psychological level. Analysts identify the $0.58–$0.65 region as the next likely support zone, using Fibonacci retracement levels and historical reaction points. Unless the token reclaims $0.70 in the near term, traders may prepare for more short-term weakness.
Analyst Signals Normalcy in the Ongoing Dip
Crypto analyst Dan Gambardello shared a statement addressing the ongoing correction. In a recent post, he reassured Cardano holders that the dip “might not even be over…yet,” but called it a normal part of market cycles. The post aligns with a broader sentiment that ADA’s decline is not abnormal within the current crypto landscape.
According to the analyst, market declines before the start of an upward trend are often expected. He made that comment after sharing a video discussing Fibonacci levels and moving averages that pointed to a possible dip to $0.60. The pullback has elicited mixed reactions, showing frustration and cautious optimism.
Meanwhile, the U.S. Securities and Exchange Commission has postponed its decision on the Grayscale Cardano ETF proposal to July 13. The final decision is expected by October 22. Notably, ADA briefly fell by nearly 4% following the announcement of the postponement.
Derivatives Volume Rises as Traders Adjust Positions
CoinGlass data indicates a 9.51% decline in ADA trading volume to $1.85 billion in the last 24 hours. Ppen interest slumped by more than 1.22% to $828.49 million, suggesting some traders may have exited positions after the recent pullback. Notably, ADA options trading also declined by 92.94%, indicating a reduced focus on long-term risk hedging.
Despite the current market uncertainty, Cardano remains among the top ten cryptocurrencies, boasting a $24 billion market cap. Its re-listing on eToro and strong DeFi development maintain its relevance despite the market’s current state.
Related: Why the Crypto Market is Down Today: Trade Fears, Liquidations, and Technical Weakness
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