- Cardano (ADA) faced a significant price drop of over 19% from $0.76 due to increased selling pressure, sparking worries of further decline towards $0.55.
- Initial market optimism from XRP ETF filings failed to boost Cardano (ADA), which remained sluggish despite broader positive sentiment in crypto markets.
The crypto market has entered a challenging phase, with top tokens struggling to maintain momentum. A combination of external economic factors, including tariff impositions, has triggered massive sell-offs. Bitcoin is battling to stay above $80,000, while Cardano has slipped below a crucial support level. On the other hand, XRP has managed to hold a pivotal range, hinting at a potential breakout.
The U.S. Securities and Exchange Commission (SEC) recently announced that memecoins are not considered securities. This means transactions involving these highly speculative assets will not be subjected to federal securities laws. This ruling offers some regulatory clarity, but market volatility continues to shape trading trends.
SEC drops big news: Meme coins aren’t securities under U.S. law! No registration needed, no federal protection for buyers. Driven by hype, not utility—think collectibles, not investments. Fraud still a no-go.
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On February 27, 2025, the SEC’s Division of Corporation… https://t.co/xi7XISYxnk pic.twitter.com/LlNizucfzK
— techAU (@techAU) February 28, 2025
Cardano Crashes Over 19% — Will Support Levels Hold?
Cardano has taken a significant hit, with prices plunging more than 19% from the previous consolidation zone of around $0.76. Even though hopes of an XRP & LTC ETF filing initially lifted sentiment, ADA has remained sluggish. A recent filing from Grayscale failed to ignite much enthusiasm. Now, mounting selling pressure has raised fears of a further decline, with concerns that ADA could drop as low as $0.55.
A deeper look at Cardano’s price movement shows a troubling breakdown from a descending parallel channel. This breakdown has yet to be fully confirmed, leaving room for a possible rebound. The Chaikin Money Flow (CMF) indicator remains above zero despite recent pullbacks, hinting that bullish strength is still present.
However, the Relative Strength Index (RSI) remains stuck below a descending trendline, signaling that ADA’s price could remain under pressure. If the lower threshold of the RSI is breached, a strong rebound might follow. Until that happens, the possibility of ADA testing support will be near $0.5205.
XRP Eyes Another Surge — Will History Repeat at $3.3?
Meanwhile, XRP has held up relatively well despite facing bearish heat. The token continues to trade within a bullish range, maintaining support at $2. Earlier this year, XRP fell to this same range before staging a powerful rally above $3.3. A repeat of that pattern remains possible, as the current setup hints at a potential breakout.
A closer examination of XRP’s price action suggests that bullish momentum is still intact. The token remains in an accumulation zone, as seen in the Accumulation/Distribution indicator. Additionally, the RSI is testing the lower threshold, which could lead to a strong rebound if buyers step in.
For XRP to continue its bullish run, it must hold above the $2 support level. If it fails to do so, a decline toward $1.6 could become a reality. Traders are closely watching for any signs of a breakout, as XRP has historically shown resilience in turbulent market conditions.
March 2025 is shaping up to be a crucial month for both ADA and XRP. While Cardano faces a tough road ahead with mounting sell pressure, XRP traders remain hopeful for a recovery. If current trends persist, the coming weeks could define the next big moves for these two key cryptocurrencies.
