Gate.io Blog Cardano (ADA) Tests Support at $0.30: Will it Withstand the pressure?

Cardano (ADA) Tests Support at $0.30: Will it Withstand the pressure?

26 June 17:49

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![](https://gimg2.gateimg.com/blog/1679447253155655279redian.jpeg)
## [TL; DR]
The price of <a href="/es/price/cardano-ada" target="_blank" class="blog_inner_link">Cardano crypto</a> (ADA) fell by 10% after the SEC designated it as a security.

Many ADA holders are likely to stop selling it if its price remains below $0.30.

Most investors who purchased ADA in May 2023 may have unrealized losses.

## Introduction 
The first week of June was a tumultuous period for the crypto industry as a result of the U.S. Securities and Exchange Commission (SEC) regulatory action against major cryptocurrency exchanges, Binance and Coinbase. That action has led to serious price falls of several cryptocurrencies like <a href="/es/price/cardano-ada" target="_blank" class="blog_inner_link">Cardano</a> (ADA). In this piece, we will discuss how Cardano was affected.

## Cardano price drops by 10% after being designated as a crypto security
The SEC’s listing of Cardano as a crypto security resulted in a 10% fall in its price. Basically, the prices of many cryptocurrencies fell as the market reacted to the bad news. However, Cardano was one of the worst hit top 10 cryptocurrencies although there is hope that it may recover as things stabilize.

During that period the support level was at $0.30 while the resistance level was at $0.33. If <a href="/es/price/cardano-ada" target="_blank" class="blog_inner_link">Cardano price</a> would fall below the $0.30 then $0.28 would likely be the next support level. On the other hand, the current downturn was initiated when the price hit the $0.33 resistance level. 
![](https://gimg2.gateimg.com/image/article/16877727583991687772517_.pic.jpg)
Cardano Price Chart -TradingView

The diagram above indicates the possible support and resistance levels of Cardano based on its previous price performance. Within the first week of June, ADA’s trading volume was very low which made the market expect an increase in the appetite if its price would fall below $0.30. Sadly, by the end of that week Cardano’s Relative Strength Index was 30 which indicated a strong bearish momentum.

However, the MACD indicator gave a promising view at that time. The histogram was showing lower lows, an indication that ADA’s market momentum would pick up again. There was also another significant development during that period. According to [IntoTheBlock](https://finbold.com/topic/blockchain/ "IntoTheBlock"), a blockchain intelligence firm, 83% of ADA holders, about  3.67 million addresses were in red as a result of that market downturn. The following diagram paints a complete picture of the situation. 
![](https://gimg2.gateimg.com/image/article/16877727974001687772530_.pic.jpg)
ADA holders in red - Finhold

As you note from the image, most ADA wallet addresses indicate losses.

## Cardano Holders could stop selling 
According to Santiment, the Market Value to Realized Value shows that most crypto holders that acquired Cardano during last month are sitting on a large unrealized loss due to the recent Cardano price fall. In fact, most of them have roughly 13% unrealized loss. Such a big potential loss can force most strategic Cardano investors to stop selling it.

Cardano crypto has so far only experienced such sharp price falls two times. Its price plunged by around 15% [after the collapse of the FTX in 2022](https://www.gate.io/explore/ftx-sbf "after the collapse of the FTX in 2022") and after the depegging of USDC earlier this year. Therefore, if most Cardano hodlers stop selling their ADA holdings it may experience a rebound soon.

There is another indication that most [Cardano holders](https://www.gate.io/uk/blog_detail/2210/cardano-ada-what-is-it-and-how-does-it-differ-from-bitcoin "Cardano holders") may stop selling if they want to recoup their investment or if they aim to realize a profit. There is a gradual fall in ADA Age Consumed, indicating that most hodlers are not willing to sell it. Primarily, the Age Consumed is a metric that assesses the sentiments of long-term investors through multiplying the number of recently transferred coins by the number of days that lapse since the time they were last moved.

The recent on-chain data shows that most investors reduced the amount of ADA they moved when its price fell below $0.35.

The sharp decrease in the ADA consumed indicates that most of the Cardano investors are unwilling to sell the crypto asset. The market expected the reduction in ADA selling pressure to help it to defend its $0.30 resistance level. If it rebounds from its current ADA price drop it may reach the $0.40 price level.

## ADA’s current price level and prediction 
So far, we have looked at the various permutations of ADA price movement based on its market performance during the first week of June. Now, let’s turn our attention to its current price direction and its estimated future value.

At the time of writing, 18 June, the ADA price is $0.2680, after shedding off 0.1% within the last 24 hours. Overall, it lost 26.9% within the last 14 days. The following diagram shows that the price of ADA decreased from $0.32 on 9 June to $0.24 on 10 June. Nevertheless, it regained by a small margin to close the day at $0.27 on 11 June. It is currently fluctuating between $0.26 and $0.28.

Read also: [How to buy Cardano ADA on Gate.io](https://www.gate.io/how-to-buy/cardano-ada "How to buy Cardano ADA on Gate.io")

![](https://gimg2.gateimg.com/image/article/16877728914011687772552_.pic.jpg)
ADA’s 30 Day Price Performance - CoinGecko

Despite the ADA’ current downward trend, several analysts believe that its price will soon rise to above $0.30 or even reach $0.40 within the next few months.

## Conclusion
The price of Cardano fell by 10% after the [SEC sued Binance](https://www.gate.io/ru/blog_detail/2448/cz-sued-by-cftu-another-turn-of-the-crypto-saga "SEC sued Binance") and Coinbase for flouting its securities laws. Currently, the value of ADA is fluctuating between $0.26 and $0.28. However, the market is expecting a rebound once the issues affecting Binance and Coinbase are solved.

## FAQs for Cardano (ADA)
### Why is ADA price dropping?
The price of ADA is falling because the SEC designated it as a security. Also, the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Binance and Coinbase exchanges led to the decrease in the values of several cryptocurrencies including ADA.

### Why is the Cardano falling so much? 
The price of Cardano started falling when the U.S. Securities and Exchange Commission (SEC) sued Binance and Coinbase exchanges for offering unregistered securities services. According to the SEC, Cardano is an unregistered security.

### Is Cardano going to keep going down?
It is unlikely that the price of Cardano will keep falling. Already, the market shows recovery from the recent ADA price drop. Currently, its price is fluctuating between $0.26 and $0.28.

### Will Cardano rise again?
The value of Cardano is likely to rise again once the market adjusts to SEC’s regulatory stance on the coin. Already, its value is moving sideways rather than falling. This is a sign of consolidation after which its price may start rising.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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TL；DR

Introduction

Cardano price drops by 10% after being designated as a crypto security

Cardano Holders could stop selling

ADA’s current price level and prediction

Conclusion

FAQs for Cardano（ADA）

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