Bitcoin price has returned to the $63,000 range, and new developments this week continue to worry investors. The SEC has issued a Wells Notice to Robinhood, spreading its weekly FUD into the markets. The SEC has started an enforcement blitz on the Ethereum ecosystem, exchanges, and even self-custody wallets, which naturally concerns investors.
Cardano (ADA)
Hoskinson conducted a poll on his social media account on May 4, measuring the community’s interest in integrating Cardano with Bitcoin Cash. Believing it would contribute to a price increase, about 70% of investors responded positively.
On May 6, the closely watched ADA/BTC pair rose by 1.54% to 729 satoshis. However, today, influenced by fluctuations in the BTC price, ADA Coin’s price dropped back below $0.45, weakening its market dominance.
ADA Coin Price Prediction
ADA Coin bulls managed to bounce back from the support level at $0.455. Within 24 hours, the price rose above $0.47. This support level corresponds to the dip of the right shoulder in ADA’s inverse head-and-shoulders (IH&S) formation, as shown below. A breakout in this formation occurs when the price rises above the neckline resistance. This leads to an expected rise equal to the maximum distance between the head’s dip and the neckline.
Accordingly, if ADA Coin price can maintain the support level at $0.455 and surpass the $0.476 neckline, we might see a new peak. The formation target points to $0.543 for ADA Coin by the end of May.
What if the opposite scenario occurs and today’s losses lead to further declines? A pullback from the IH&S neckline, as shown in the daily chart below, would trigger a head-and-shoulders formation. This would bring a significant risk of decline. The decreasing trend line and resistance warn of a pullback towards the trend line support. If the pessimistic scenario unfolds, the formation would need to complete at $0.351. This is precisely the target level for those expecting a decline by the end of May.
BTC is currently lingering around the $63,000 region, and investors are rightly reducing their risks in altcoins.
