Cardano (ADA) price has declined 32% in June 2023 so far. The recent delisting of ADA by Robinhood and Bakkt has played a central role in Cardano’s dismal performance. Will Cardano reclaim $0.30 as investors on larger exchanges queue up to buy the dip?
In a recent court filing, the SEC listed Cardano (ADA) as one of the cryptocurrencies identified as securities. In response, prominent exchanges like Robinhood, Etoro, and Bakkt have announced the decision to delist ADA and other notable altcoins.
However, on-chain data shows that ADA’s 32% price correction has been largely driven by investors’ panic selling rather than a liquidity crunch.
Firstly, none of the three exchanges that delisted ADA are among the top 20 ranked crypto exchanges by trading volume. More importantly, the rising volume of purchase orders shows that ADA has not suffered a significant deterioration in demand.
As the market FUD clears, is ADA set to reclaim the $0.30?
Despite Delistings, Cardano Purchase Orders are Rising
Despite the recent delistings, investors have continued to pile up orders to purchase ADA across other crypto exchanges that still support Cardano.
The Exchange Market Depth chart provides a snapshot of an asset’s demand and supply levels by drawing real-time data from the order books of top exchanges.
As things stand, investors have opened orders to buy 76.6 million ADA coins. Meanwhile, the bearish traders have listed only 46.9 million coins.
This shows that despite the recent legal concerns, Cardano is still attracting a healthy level of market demand. In fact, the chart above shows that ADA demand currently outpaces supply by nearly 65%.
Typically, traders are incentivized to charge higher prices when demand for an asset outpaces market supply by such a large margin. If this occurs as expected, it is only a matter of time before buyers start to compete and inadvertently push the ADA price above $0.30 again.
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Whale Investors Have Not Lost Confidence In Cardano
Over the past two weeks, Cardano has witnessed a significant drop in whale transactions. However, zooming out on the on-chain data reveals that the current level of whale trading activity is still much higher than the volumes recorded in Q1 2023.
Specifically, the Cardano network recorded a total number of 6,460 whale transactions on June 19. Meanwhile, the highest ever recorded in Q1 was 6,450 whale transactions on Feb 7.
Whale Transactions refer to a confirmed transaction that exceeds $100,000 in value. The chart above indicates that, while Cardano’s institutional investors have recently tuned down their trading activity due to the recent market fears, they have not entirely lost confidence in the project.
If the whales keep their trading activity at a healthy level, as identified above, Cardano will likely reclaim $0.30 in the coming weeks.
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ADA Price Prediction: Mission to Reclaim $0.30
Considering the aforementioned factors, Cardano bulls can set their sights on a mission to reclaim $0.30. But ADA must first scale the major resistance around $0.27.
Notably, 17,650 investors that bout 1.05 billion ADA coins at the average price of $0.27 will offer significant resistance.
But if ADA scales that resistance zone, the bulls can achieve the mission to reclaim $0.30.
Conversely, the bears could trigger a negative price reversal if ADA fails to hold the $0.25 support level. Although, the 30,780 investors that purchased 247.5 million ADA at the minimum price of $0.25 will likely prevent the drop.
However, if that support level caves, the ADA price could still retrace toward $0.21.
It is also important to note that while Robinhood and Bakkt’s decision to delist ADA will only take effect from June 27 and July 12, respectively. Furthermore, the decisions were only proactive and have not been mandated by the SEC or any court ruling.
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