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Joel Frank
Author
Joel Frank
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Why Trust Cryptonews
The Cardano (ADA) price is staging a much needed rebound after being slaughtered over the course of the last week, as the broader crypto market rebounds from lows.
ADA was last changing hands around $0.7250, a more than 11% rebound from the lows it hit earlier in the day around $0.65.
But that leaves the crypto still down close to 40% from the highs it hit 9 days ago when President Trump announced a crypto reserve including ADA in a tweet on X.
In the end, Cardano only made it into a national US crypto stockpile, which was set up by US President Trump last Thursday.
And unlike the strategic Bitcoin reserve that Trump signed into law at the same time, there are currently no plans to increase the size of the stockpile via additional Cardano purchases.
Worse yet for Cardano, its co-founder and figurehead head Charles Hoskinson wasn’t invited to the White House summit on crypto last week.
The snub is a gut punch for ADA investors who had been hoping for bullish outcomes like Cardano being included in the strategic reserve (not stockpile) and for Charles Hoskinson to work his way into Trump’s inner circle as a crypto advisor that could bolster the crypto’s US adoption.
That leaves the Cardano price vulnerable to a breakout to fresh multi-month lows under $0.55 in the coming weeks as the broader macro backdrop sours.
How Low Could the Cardano Price Go?
Bullish Cardano narratives have lost a great deal of traction over the last week and as the broader crypto market faces a difficult period, ADA could be destined for some underperformance.
Rising concerns that the Trump administration is knowingly pursuing policies that will create short-term economic pain (D.O.G.E austerity and trade wars) have battered risk appetite in recent weeks.
US stocks have seen a substantial slide from their yearly peaks and this has weighed heavily on crypto.
With things likely to worsen for the US economy in the coming weeks and months, this is a trend in financial markets that is unlikely to let up anytime soon.
That means risks are tilted to the downside for major cryptos like Cardano, which are very sensitive to the market’s broader sentiment.
The Cardano price is currently testing its 200DMA for the third time in just over one month, with a convincing breakout to the downside looking increasingly likely, which could then cascade into a breakout below the February lows.
That could open the door to a prolonged move lower back to the late-2024 $0.27-41 range. That would mark a drop of potentially as much as 50% from current levels.
Buy the Cardano Dip?
Should Cardano drop back to these depressed levels, that could offer a compelling risk-reward bet for the coming years.
That’s because the current macro pain weighing on the market will almost certainly be temporary.
Sure, it could last for a few months or even a year. But once macro conditions improve and the liquidity flood comes, it’s likely to be off to the races for the crypto market.
That’s because the narratives behind the industry and markets are just so bullish right now – accelerating global adoption, particularly of Bitcoin, but also a now very friendly regulatory environment in the USA.
Cardano could easily 10x from its lows in the $0.40 area back to record highs around $4 by the end of Trump’s four-year term.
However, investors would be wise not to put all their eggs in one basket, Cardano remains a highly speculative crypto owing to its lack of real world adoption and reliance on community and hype.
Investors might want to consider allocating a bigger percentage of their portfolios to better-established cryptos like Bitcoin, Ethereum and Solana.
