Cardano (ADA) at a Crossroads: Analyst Warns of Key Support Test Amid ETF Uncertainty

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

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

Amid this development, crypto analyst Dan Gambardello has suggested that ADA’s price is at a critical juncture. He argues that the asset must hold key support levels to maintain its bullish momentum, but external factors, including Federal Reserve policy decisions, could impact its short-term trajectory.

Will Cardano Hold Its Key Support Levels?

Gambardello highlights that ADA is struggling to maintain its 200-week moving average (MA), which currently sits between $0.73 and $0.74. This level is crucial for confirming a long-term bullish trend. Additionally, ADA is trading between its 20-week and 50-week MAs, mirroring a pattern seen in the 2021 bull market before a breakout.

However, the analyst warns that if market expectations of a Federal Reserve interest rate cut are not met, ADA could experience a sharp decline. In this scenario, a drop to $0.50—over 31% lower than the current price—remains a possibility.

On the upside, ADA bulls need to see the price break above $0.78 and $0.80 to fuel a move toward $1.25, a level Gambardello describes as “the upper end of the bull market doors.”