Cardano’s price dropped 6.27% recently after the Senate postponed the CLARITY Act to focus on Russian sanctions, just days before the August recess. This move sent ADA tumbling to around $0.1643 on July 29, bouncing off a key fair value gap near $0.1450.
The daily chart reveals that ADA slipped through a triangle pattern formed since mid-July, triggering the sharp decline. It found temporary support from a gap just above June’s low at $0.1386 but faces resistance at the 20-day EMA around $0.1654 and the 50-day EMA near $0.1737. Should the current bounce fail, support levels at $0.1563 and $0.1513 come into play.
One analyst, Cheeky Crypto, sees this dip as a prime buying opportunity. He pointed to whale wallets accumulating during June’s 40% market crash rather than selling, a behavior that has historically preceded massive rebounds in major altcoins. His analysis suggests Cardano could surge up to 800% from current prices, framing the recent downturn as an entry point rather than a sign to exit.
Cardano’s on-chain data supports this bullish view, with stablecoin supply on the network hitting $55 million three times last year’s level fuelled by growing USDCX integration. This reflects increased activity and investor interest despite the recent legislative setbacks. However, others warn the clock is ticking as the Senate delays could prolong uncertainty and pressure Cardano’s price further.
Bitcoin’s recent rally contrasts with Cardano’s struggles amid regulatory delays, showing how sensitive the market remains to US legislative developments. Traders will be watching closely to see if ADA can break through resistance or if it will test lower floors again.
This content is for informational purposes only and should not be considered financial advice.
