Why trust Greenbot
Cardano (ADA) has steadied around $0.70 after falling 40% last week, even after its recent inclusion in the US Strategic Crypto Reserve.
The cryptocurrency first shot up 80% after President Donald Trump’s March 2 announcement but has since dropped as market uncertainty grew.
The digital coin jumped from $0.64 to $1.14 in just one day when Trump said ADA would join Bitcoin, XRP, and Solana in the government program. Trading volume has nearly doubled to $1.4 billion daily in March compared to February’s $720 million average.
“Cardano’s roadmap is solid, and institutional adoption is just beginning. We expect major ecosystem growth in 2025,” said Charles Hoskinson, Cardano’s founder.
The crypto community became divided on the reserve’s composition. Brian Armstrong, Coinbase CEO, suggested that “just Bitcoin would probably be the best option – simplest, and clear story as successor to gold.” He added that a “market cap-weighted index of crypto assets” could be another fair choice.
Arthur Hayes, former BitMEX CEO, doubted the whole plan would work. “Nothing new here. Just words. Let me know when they get congressional approval to borrow money and/or revalue the gold price higher,” Hayes posted on X, formerly Twitter.
ADA’s price fell despite whales (large investors) buying about 130 million ADA (worth over $94 million) right after the announcement. These same big investors have since sold roughly 2 million ADA each week as technical signs turned negative.
Chart experts point to warning patterns that could push prices down further. A “death cross” has formed as short-term averages dropped below long-term ones. The price also couldn’t break above $0.82, strengthening the negative outlook.
Market experts predict a potential downside to $0.50 if selling pressure continues, citing weakening momentum indicators and declining MACD readings. Others maintain a bullish long-term outlook, forecasting prices between $2 and $5 by late 2025.
Cardano’s struggles come as economic signals send mixed messages. The Federal Reserve will likely pause rate hikes at its upcoming meeting, but inflation readings have raised concerns about ongoing trade wars. The chances of Trump removing tariffs on Canada before May dropped 18% on Thursday, according to Polymarket.
Cardano ranks eighth among cryptocurrencies, with a total value of about $25.6 billion. The network keeps growing, with over 5 million wallets and 1.3 million delegators using its system.
