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During this week, the cryptocurrencies Cardano (ADA) and Solana (SOL).t dropped a lot compared to the positive trend curve of the overall crypto market.
The situation worsened during the day before the withdraw both crypto assets of the Robinhood trading app. Therefore, although the price of Cardano (ADA) managed to initiate a clear reversal on June 10, it was unable to sustain it.
The subsequent decline suggests that the the market trend is still bearish. For analysts, if the price of Cardano loses its current horizontal support level, it could trigger a selloff that will take the price to a new annual low and beyond.
It is these altcoins that bear the brunt of the SEC attacks
On June 9, the popular trading platform Robinhood has announced that its support has ended granted to Cardano (ADA), Solana (SOL) and Polygon (MATIC) cryptocurrencies. These tokens will be removed from their list of tradable assets on June 27 to give users time to dispose of them.
Although the platform said in its announcement that this decision came on the based on a final internal review, most members of the crypto community don’t believe it.
In fact, the decision was made just after these three cryptocurrencies were named as financial securities in the SEC’s complaint against Binance and Coinbase. Also, it’s very likely that the application is just trying to distance itself from what it perceives to be a ticking time bomb.
eToro or Revolut later still it made a similar decision for its US clients mainly out of fear that the SEC would see them attacked when they do with Binance or Coinbase.
The Cardano market continues to decline
When we look at the evolution curve of the cryptocurrency during this month, we can see that Cardano’s native token, ADA, is definitely one of the most affected by this situation. Technical analysis of ADA on a daily time frame shows that their price dropped by 39% between the period 10 to 25 June.
The recovery began when the value of the token fell to its annual low on June 10 following the announcement from the SEC and Robinhood. This then gave him an opportunity recover the $0.25 horizontal support zone.
However, despite this reversal, the price of the ADA token failed to sustain the rise and has since fallen, almost reaching the $0.30 area again.
Additionally, the weekly study shows the Relative Strength Index (RSI), which traders often use to measure market momentum and determine whether an asset is overbought or oversold, shows results that indicate the trend is down.
ADA Cryptocurrency Price Prediction: Is A Price Drop Imminent?
By taking a closer look at the number of waves present on the price chart, analysts were able to find features that would suggest that the price of ADA may eventually fall off its lows. $0.25 horizontal support zone.
When we talk about wave analysis, we are referring to Elliott wave theory which involves the analysis of long-term recurring price patterns and investor psychology to determine trend direction.
The wave count conducted in the ADA market shows that the cryptocurrency price is completing the fifth and final wave of a downward movement. Therefore, it is very likely that the sign gets a new floor.
Note, however, that despite the recent bearish forecasts for its price, if the signal manages to generate a move above the low of the first wave located at $0.35, it could maintain its upward trend. The cryptocurrency could then to rise again towards $0.50.
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