Cardano price has entered consolidation mode for the past few days after experiencing its worst month so far this year. ADA has been in a freefall since the start of the month, securing a place among the worst-performing cryptocurrencies this year. The altcoin has crashed more than 30% in the past month and is down by nearly 6% over the last week. Cardano’s total market cap has decreased by nearly 1% over the last 24 hours to $9 billion, while the total volume traded jumped by 25%.

Fundamental Analysis

Cardano price has been under intense pressure for the past few weeks, entering consolidation mode in the new week. The latest bombshell SEC lawsuit against Binance and Coinbase saw the ADA price crash to its lowest level since the end of January this year. The US Securities and Exchange Commission (SEC) filed a lawsuit against the crypto exchanges earlier this month, accusing them of selling unregistered securities.

In the lawsuit, the SEC also termed a slew of altcoins, including Cardano, Solana, and Polygon, as securities. The announcement saw the assets dip to their lowest levels so far this year. However, the Cardano development company IOG dismissed the claims made by the Wall Street regulator, stating that the lawsuits against the crypto exchanges contained “numerous factual inaccuracies”. In its statement, IOG said that the allegations would have no impact on the company’s operations.

The Federal Reserve’s latest interest rate decision also saw the crypto market pull back further, building on the losses made from the regulatory concerns. The US central bank announced a pause in its interest rate hike campaign this month in the wake of a slowdown in the inflation rate. While the pause should be a good thing, it was accompanied by a sting to the tail after the Fed signaled its support for two more interest rate hikes this year. According to the Fed, the next hike will be implemented in July.

Investors are now bracing for the Bank of England’s interest rate decision later in the week as markets price in a 25-basis point hike to 4.75%. An environment of higher interest rates tends to be bearish for risk assets such as stocks and cryptocurrencies. Markets will be anticipating further directions of the interest rate outlook from Capitol Hill testimony by Federal Reserve chair Jerome Powell later this week.

Cardano Price Technical Analysis

Cardano price has failed to start a fresh upside price correction above the critical support level of $0.300 as seen on the daily chart. The digital asset has continued moving below the 50-day and 200-day exponential moving averages, as well as the 100-day and 200-day simple moving averages. Its Relative Strength Index (RSI) has moved lower into the oversold region, while the Moving Average Convergence Divergence (MACD) indicator hints at a continued downswing.

Therefore, the Cardano price is likely to continue falling in the ensuing sessions amid regulatory concerns and macroeconomic uncertainties. If this happens, the next support level to watch will be $0.2420. On the flip side, a move above the bullish support level of $0.300 will have buyers eyeing the next resistance level at the 50-day EMA at $0.3290.

ADA Price Chart