- Cardano (ADA) faces a bearish week, with price drops and uncertainty weighing on the market.
- However, its long-term potential remains strong, especially with potential US crypto-friendly policies.
Cardano Faces a Bearish Week
Cardano’s (ADA) price has taken a hit this week, dropping 11%. After a surge from Monday’s lows, ADA bulls seem to have lost momentum. Despite being up 38% from the week’s crash, the market’s current tone looks bearish.
Uncertainty in the Market
This week’s White House Crypto and AI Czar David Sacks’ conference didn’t offer any fresh catalysts to drive ADA’s price. While the White House considers a digital asset reserve and potentially adding crypto to its sovereign wealth fund, there’s no immediate news. For now, altcoin markets are struggling with a lack of bullish momentum. Traders seem to be waiting for news, and this uncertainty is weighing on prices.
Potential Spark from Elon Musk
One possible bright spot comes from Elon Musk’s proposal to move US Treasury payments on-chain. Some suggest that Musk could choose Cardano for the job. If that happens, it could spark excitement, but it’s still a long shot.
Charles Hoskinson, Cardano’s founder, has promised February will be a “crazy month.” Could a big announcement be coming? Traders aren’t pricing in any big moves yet. They’re cautious and waiting for the next development.
Focus Shifts to US Jobs Data
Looking ahead, traders will focus on the upcoming US jobs data. This release could influence the Federal Reserve’s rate cut expectations. A favorable jobs report could boost the financial markets and potentially trigger a recovery for ADA. However, broader concerns linger, especially with the possibility of Trump causing a global trade war. Fears like these could keep markets on edge, creating volatility.
As of now, Cardano’s price could retest the 200-day moving average (DMA) near $0.62. Another retest of the $0.51 region from Monday is also likely. Traders should brace for more volatility in the coming weeks as macroeconomic factors collide with the US’s evolving crypto policy.
Long-Term Potential Remains Strong
Despite the short-term uncertainty, ADA’s long-term outlook remains promising. If Cardano is included in the US digital asset reserve or chosen for Treasury’s blockchain, any price dips will likely get bought up.
The Road Ahead for Cardano
If the Trump administration follows through on its pro-crypto stance, Cardano’s future looks bright. Once the market stabilizes, ADA could surge beyond late 2024 highs around $1.30 and potentially revisit record highs above $3.00.
Cardano presents a strong buy opportunity. Its long-term potential, especially with the US’s crypto-friendly policies, makes it a promising investment. Prepare for short-term volatility, but keep an eye on its growth over the next few years.
