The Cardano (ADA) price bubble may be bursting, with ADA bears controlling the market on Thursday as the cryptocurrency drops 11% for the week.
Whilst the ADA price is still more than 38% up versus its Monday price crash lows, bulls will be discouraged by how the recovery has lost steam in recent days.
White House Crypto and AI Czar David Sacks’ press conference earlier this week gave the altcoin bulls little by way of fresh bullish catalysts to go off of.
The White House is currently studying the idea of setting up a digital asset reserve and including crypto in its proposed sovereign wealth fund, and there is unlikely to be any news on these fronts for a while.
That means altcoin markets don’t have a lot to go on right now, which could explain the downbeat tone to trade.
Elon Musk’s proposal to move US Treasury payments on-chain could spur some excitement, with some calling for Musk to choose Cardano.
Charles Hoskinson is set to meet with the Trump administration this month and has promised February is going to be a “crazy month”.
Does that mean a big announcement is coming? Well, traders don’t appear to be pricing anything into the Cardano price right now.
Where Next for the Cardano Price?
Focus in the coming days will switch to macro, with important US jobs data coming up on Friday that could impact Fed easing expectations and broader financial market sentiment.
As long as the data doesnt do anything to push back against Fed rate cut expectations for this year, that could facilitate a near-term price recovery.
But markets remain on edge owing to fears of Trump igniting a new global trade war, this of course being the catalyst behind Monday’s market rout.
Traders should prepare for volatility in Cardano’s price in the coming weeks as investors balance the US pro-crypto policy shift against potential macroeconomic challenges.
As of right now, a retest of the 200DMA around $0.6222 seems likely, with a retest of Monday’s lows in the $0.51 region also very likely.
However, the prospect of ADA’s potential eventual inclusion in a US digital asset stockpile, or of being picked as the US Treasury’s new blockchain to run on, means that price dips will likely continue to be bought into.
One would assume, if the Trump administration is correct in its assertion that it plans to bring about a new golden era for crypto in the USA, that the Cardano price’s long-term outlook remains very strong.
If investors can weather near-term volatility, a surge beyond late 2024 highs in the $1.30 area and back towards record highs above $3.0 could be on the cards.
Cardano could still have 5x or more potential from its current levels before the end of this cycle, making it a strong candidate for best crypto to buy now.
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