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Cardano (ADA) has faced a long period of lackluster price performance. The price of the altcoin continued to suffer, as the support of investors decreased and the cryptocurrency did not recover.
Now the question arises: will the ADA drop an additional 31%?
Hoskinson supports the GENIUS Act
Charles Hoskinson recently urged the passage of the GENIUS Act and supported former President Trump’s statements about banks threatening the law. Hoskinson expressed agreement with Trump, which may indicate the support that the ADA needs to regain.
Hoskinson said he agreed with the president. While the banks have amended the bill 137 times. They should stop messing with it and trying to shut down the industry. The source of the statement.
Investor sentiment remains weak, with the big whales leading the wave of selling pressure. Last week, approximately 210 million ADAs were sold for a value of more than $56.7 million. As whales continue to exit the market, sentiment remains largely negative, increasing… ADA Suffering.
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The growing negative investor sentiment, especially large holders, reveals the challenges ADA faces to sustain a strong recovery. Despite Hoskinson’s support, the price of ADA remains under pressure, and investors continue to lose confidence.
Cardano’s short-term holders have the say
Cardano’s overall momentum is also below the desired level. The MVRV long/short spread, which measures the profitability of long-term holders compared to short-term holders, remains in negative territory.
This indicates that the short-term holders who dominate the market are making profits, while the long-term holders are struggling. The absence of a quick recovery and declining buying interest has allowed the corrections to dominate the market. These investors usually sell at the first sign of profit, which results in compounding ADA price fights.
Note that with increasing selling pressure from short-term investors, ADA faces higher volatility. The lack of sustained buying by long-term investors means that Cardano may find it difficult to achieve a noticeable price recovery in the short term.
The ADA price drop has arrived
The price of Cardano is currently recorded at $0.27, and is below the resistance level of $0.28. The coin has formed a bearish flag pattern, indicating a potential downside of 31.75% to the $0.17 support level. If the ADA fails to break the resistance level and continues to fall, you can suffer significant losses.
The negative market sentiment with the current price action shows that a break of the $0.25 support level will lead to further downward momentum. Losing the support at $0.22 is a confirmation of the bearish flag pattern, and ADA can then fall to $0.19, exposing the cryptocurrency to the level of $0.17.
He explained that if Cardano receives social support or macro conditions improve, there is a possibility that ADA will bounce back from the $0.25 support and climb to $0.31. Crossing the $0.31 level invalidates the bearish scenario and may indicate a reversal towards higher levels for the altcoin.
