Cardano (ADA) price is currently fighting key technical levels on both weekly and daily timeframes.
The cryptocurrency’s price action comes amid news that the Securities and Exchange Commission (SEC) has extended its review period for the Grayscale Cardano ETF application by an additional 45 days.
The extension pushes the decision deadline to May 29th, a move that crypto market analyst Dan Gambardello describes as routine rather than concerning.
This development coincides with ADA testing the critical 200-week moving average around $0.73-$0.74, a level Gambardello identifies as the lower boundary of what he terms the “bull market doors.”
ETF delay is part of standard SEC procedure
The SEC’s decision to extend the review period for Grayscale’s Cardano ETF application shouldn’t trigger alarm bells, according to market analysts.
The new May 29th deadline follows a pattern of regulatory caution that has become common practice for cryptocurrency ETF applications.
“There’s no need to panic,” Gambardello stated in his analysis. “The ETF wasn’t expected to be accepted by the first deadline. Delays on crypto ETFs are very common to evaluate all the details.”
Data shows the SEC has consistently pushed back decisions on digital asset investment products.
As recently as March 11th, the regulatory body delayed verdicts on over 60 crypto ETF applications, including spot ETFs for Solana, XRP, Dogecoin, and Litecoin, with updates postponed until at least April 4th.
This cautious approach by regulators has been ongoing since 2013, with dozens of delays occurring when factoring in peak periods of Bitcoin ETF filings and the newer wave of altcoin ETFs.
Gambardello pointed to Ethereum’s ETF approval experience as a sobering reminder not to place too much importance on regulatory green lights.
Despite securing ETF approval in May 2024, Ethereum hit its peak at that moment and subsequently dropped approximately 50% from that approval high.
“Let’s not rely on an ETF like this is it. This is the moment—get the ETF approved, it’s up only, game on, next level,” Gambardello cautioned.
He suggested that overall economic factors would likely have more impact on ADA’s price than the ETF decision alone.
Cardano Price Battles Key Technical Levels
Cardano price currently fights with the 200-week moving average at approximately $0.73-$0.74.
This level marks what Gambardello calls the “lower boundary of the bull market doors,” a zone that has acted as a key inflection point throughout Cardano’s price history.
On the daily chart, ADA faces additional hurdles with the 20-day moving average at around $0.78 and the 50-day moving average near $0.80.
Conquering these levels would signal a potential shift in the momentum, according to the analyst.
“If ADA can get back above those areas now, we really do have a shot for ADA to test the upper end of these bull market doors again,” Gambardello noted.
This upper boundary sits at approximately $1.25, which represents the last major swing high before the bear market began.
The current price structure shows similarities to patterns observed in previous market cycles.
Gambardello highlighted how ADA is now consolidating between the 50-week and 20-week moving averages, mirroring behavior from the last cycle that preceded a major move.
However, the analyst acknowledged the possibility of further downside if broader market conditions deteriorate.
“We can easily see the volatility of crypto continue to the downside,” he warned.
“ADA might have to test the 50s, even lower than the 50s, test the 50-week moving average again around 59 cents.”
Macroeconomic Catalysts Set Stage for Altcoin season
The market appears increasingly favorable for cryptocurrencies like Cardano, according to Gambardello’s analysis.
He points to falling inflation metrics as a positive signal for the crypto market.
The analyst expects an upcoming pivot in Federal Reserve policy, with potential interest rate reductions on the horizon.
This shift would mark a change from the current phase of monetary tightening that has restrained altcoin performance.
“We’ve been in this contraction kind of mode, and this is why really we’ve not seen altcoin season,” Gambardello explained.
“We’re waiting for the expansion. We’re waiting for interest rates to start coming down.”
The potential for looser monetary policy aligns with what Gambardello sees happening with the U.S. dollar.
Drawing parallels to previous cycles, he noted how market conditions often shift to accommodate political pressures regarding interest rates and dollar strength.
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