Cardano (ADA) is facing a long period of lackluster price performance. Altcoin prices continue to struggle as investor support wanes and cryptocurrencies do not recover.
Now the question is: Will ADA be reduced by another 31%?
Hoskinson supports the GENIUS Act
Charles Hoskinson recently rallied for the passage of the GENIUS Act and supported former President Trump’s statements threatening banks. Hoskinson expressed agreement with Trump, which could signal the support the ADA needs to bounce back.
“I agree with the president. The banks have amended the bill 137 times. They have to stop tinkering with the bill and trying to shut down the industry,” Hoskinson said.
However, investor sentiment remains weak, with whales leading the selling pressure. Approximately 210 million ADAs worth more than $56.7 million were sold in the past week. As the whale exodus continues, market sentiment remains largely negative, exacerbating ADA’s woes.
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The growing bearish mood among investors, especially large holders, highlights the challenges ADA faces in sustaining the strong recovery. Despite Hoskinson’s claims, ADA’s price remains under pressure and investor confidence continues to decline.
Cardano STH has the right to decide
Cardano’s macro momentum is also not positive. The MVRV long/short differential, which measures the profitability of long-term holders (LTH) and short-term holders (STH), remains deep in the negative zone.
This shows that while STH, which dominates the market, is making profits, LTH is struggling. The lack of a sharp recovery and lack of buying interest allows short-term holders to control the market. These investors tend to sell as soon as they make a profit, further exacerbating ADA’s price war.
ADA is facing increased volatility as selling pressure from STH increases. The lack of sustained buying from long-term investors means Cardano may struggle to achieve a meaningful price recovery in the short term.
ADA price decline will continue
Cardano price is currently $0.27, just below the $0.28 resistance level. The altcoin has formed a bearish flag pattern, indicating a potential fall of 31.75% to the $0.17 support level. If ADA fails to break above the resistance and continues to fall, you could face significant losses.
Negative market sentiment and current price trends suggest that a decline below the $0.25 support level could trigger further bearish momentum. Losing the $0.22 support will activate the bearish flag pattern and ADA could fall to $0.19, exposing the cryptocurrency to the $0.17 level.
However, if Cardano gains social support or the macro environment improves, ADA could bounce off the $0.25 support and rise to $0.31. A breakout of the $0.31 level could invalidate the bearish theory and signal a reversal to higher levels for the altcoin.
