Cardano price extended its downside on Friday to stay on course to register the fourth successive daily loss and the first double-digit weekly loss since March. While the decline mirrored the broader cryptocurrency market losses in the last three days, ADA is also up against the negative sentiment generated by the SEC’s decision to delay its decision on Grayscale Cardano spot ETF.
Securities and Exchange Commission (SEC) announced on Wednesday that it has delayed its decision to convert Grayscale Cardano Trust into an ETF for 45 days. That means investors have to wait until July 15. In addition, the market regulator delayed the decision on Avalanche’s ETF until July 13th and Bitwise Crypto Index Fund by 60 days. The new development drove Cardano price to breach the $0.700 support for the first time in three weeks, underlining the strengthening of its recent bearish run.
ADA’s 24-hour trading volume was up by 43% at press time, signaling rising selling pressure. In addition, its open interest contracts declined by 4.29% in that period to read $414.3 million. Also, the price remains below the 9, 21 and 50 day moving averages. That trend is also reflected in the shorter 4-hour time frame, adding credence to a short-term bearish hold. That sad, the broader crypto market trajectory has been trending downward this week, with market leader Bitcoin’s price having declined by nearly $5k. An extension of that trend heading into the weekend will limit ADA price upside potential.
Cardano Price Prediction
Cardano price pivots at $0.714 and resistance at that level signals the prevalence of the downward momentum. The coin will likely find its initial support at $0.700. However, an extended control by the sellers will break below that level and could potentially send the price to test $0.687.
On the other hand, the momentum will shift to the upside if ADAUSD breaks above $0.714. That will likely see the coin move higher and encounter the first resistance at $0.729. Action above that level will invalidate the downside narrative. Also, that momentum could push gains further and test $0.746 in extension.
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