Cardano Price ‘At War’ as SEC Delays Decision on ADA ETF

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• Cardano battles key resistance as SEC delays ETF decision until May 29.
• Whale accumulation of 180M ADA signals renewed investor confidence 

The Securities and Exchange Commission (SEC) has delayed its decision on the Canary Capital ADA exchange-traded fund (ETF) application until May 29, dampening investor sentiment. Prominent crypto analyst Dan Gambardello asserts that Cardano’s price is “at war,” facing key resistance and support levels. 

ADA struggles to hold its 200-week moving average, and its future movement depends on breaking critical price barriers. Meanwhile, whale activity suggests growing confidence in the asset despite recent price fluctuations.

ADA Price Struggles at Critical Levels

Crypto analyst Dan Gambardello has highlighted that Cardano (ADA) is in a critical price battle. He noted that ADA is testing its 200-week moving average (MA), which ranges between $0.73 and $0.74. Holding above this level is essential for maintaining bullish momentum.

Cardano Price at War As ADA ETF Drama Unfolds!

Intro 00:00
Important to start with this 00:40
The pivot is coming 1:30
Cardano ADA ETF delayed 3:00
Cardano price 5:15 pic.twitter.com/pOq0rKAeKi

— Dan Gambardello (@cryptorecruitr) March 13, 2025

Gambardello also pointed out that ADA is currently trading between its 50-week and 20-week MAs. He explained that similar price action occurred in the 2021 bull market before ADA surged. However, he cautioned that a failure to hold this range, combined with a lack of Federal Reserve interest rate cuts, could result in a price drop to $0.50, representing a 31% downside from its current price.

For a bullish breakout, Gambardello stated that ADA must surpass the 20-day MA at $0.78 and the 50-day MA at $0.80. If these resistance levels are broken, ADA could reach $1.25, which he describes as the “upper end of the bull market doors.”

SEC Delay and ETF Market Uncertainty

The SEC has extended its review of the Grayscale Cardano ETF by 45 days, moving the deadline to May 29, 2024. Gambardello reassured investors that such delays are common. On March 11, the SEC postponed over 60 crypto ETF applications. These include those for Solana, XRP, Dogecoin, and Litecoin. Historically, Bitcoin also faced multiple delays before its ETF approval.

Gambardello warned that ETF approvals do not guarantee immediate price increases. He referenced Ethereum’s ETF approval in May 2024, which was followed by a nearly 50% price drop. Instead, he emphasized macroeconomic factors, particularly inflation, as more influential in determining crypto prices. He suggested that declining inflation could lead to lower interest rates, potentially benefiting ADA’s price in the long run.

Whale Accumulation Signals Market Confidence

Despite recent price fluctuations, whale investors have been accumulating large amounts of ADA. According to Santiment data, wallets holding between 1 million and 10 million ADA have added 180 million tokens in the past week. This accumulation suggests renewed confidence among large investors.

Historically, increased whale accumulation has led to price stabilization or upward movements due to reduced circulating supply. ADA’s trading volume has surged by 16.31% over the past 24 hours, signaling heightened investor interest. However, market caution remains, as indicated by the volume-to-market-cap ratio of 8.12%.

As noted in our last analysis, ADA’s price fell 2.73% to $0.7195 amid increased market volatility. Analysts suggest that the next few weeks will be crucial for ADA’s price direction. If the asset closes above $0.80, a reversal could be possible. However, if it fails to maintain support above $0.73, further downside could be expected.