Cardano prices have come tumbling in the past few years as bulls failed to defend the hype created by Trump’s announcement of a Strategic Crypto Reserve that includes ADA tokens. We explore what caused the 20% value drop today.
Cardano had its best day of the year on Sunday when it surged by close to 70% in a few hours, even crossing the coveted $1 mark –albeit temporarily on Sunday.
The massive gains were triggered by the announcement by President Trump that the 8th most valuable digital currency would be one of five core assets making up the US Strategic Crypto Reserve.
However as analysts started poking holes to the viability of such a reserve, top gainers of the Sunday rally started giving back these gains.
Cardano, for example, is down by more than 20% in the last 24 hours – effectively shedding al the gains made after the reserve announcement and back to trading around its key support level of $0.82.
Why is Cardano Falling?
Cardano’s price decline today can be attributed to several factors. Firstly, the initial hype surrounding the proposed crypto reserve has subsided as analysts raise concerns about the project’s viability, especially given the lack of concrete action following Trump’s crypto announcements.
This has led to a wave of profit-taking, with investors rushing to sell their Cardano holdings, triggering a broader market-wide panic selling mode.
Additionally, the overall market sentiment remains bearish as investors await the impact of Trump’s tariffs on the cryptocurrency industry, further contributing to Cardano’s price downturn.
How Low Can Cardano Fall?
To a great extent, Cardano’s immediate-to-long term price action will be determined by the general market direction. It will continue rallying and possibly shoot to a new all-time high above $20 if the market starts rallying.
Other factors expected to play a key role in influencing Cardano’s recovery are its resilience and the ever rising possibility for approval of a Cardano ETF before the end of the year.
It, nevertheless is still worth noting that for Cardano to prevent further price drops, it has defend the current support level of $0.82. Failure to do so could lead to a decline towards the next support level at $0.6, and possibly even below $0.50.
🚀 Don’t Miss the Next Big Crypto Move!
Our premium members received real-time alerts on major crypto plays before they happened. Will you be ready for the next one?
🔴 Latest Insider Alerts:
- 📢Buy The Dip Is Here (Feb 28th)
- 📢How To Know Whether BTC Will Set A Bottom This Week? (Feb 25th)
- 📢This Token Is Set To Emerge As An Outperformer as USD Breaks Down. (Feb 16th)
- 📢When Will This Market Finally Start Moving? (Feb 9th)
- 📢Will February 5th Come To The Rescue? (Feb 4th)
⏳ Limited Spots Available – Secure Yours Now!
