- Cardano’s underwhelming performance continues into its third month.
- Charles Hoskinson warns Biden’s days in the White House are numbered.
- ADA hints at imminent turbulence.
Cardano has found itself struggling for two months and appears to be locked on its concerning path into its third month. However, with positive developments breathing life into the crypto market, ADA could be gearing up for a potential comeback.
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In this edition of DailyCoin Regular, we talk about:
- Cardano dropping out of the top 10 rankings.
- Charles Hoskinson’s warning to Biden.
- ADA’s potential comeback and more.
Join our resident Cardano expert, Insha Zia, as he sheds light on these exciting developments.
Table of Contents
News and Events: Understanding the Impact
Cardano Briefly Drops Out of Top 10
Cardano has long dominated the crypto industry, consistently ranking within the top 10 by market capitalization, even after weathering the storm of a multi-year bear market and losing its all-time high in 2022.
However, last week brought a dramatic twist. The SEC’s unexpected approval of multiple ETH ETFs sent the market into a frenzy, launching several altcoins and meme coins to the moon.
Amidst this excitement, Cardano found itself unceremoniously booted from the top 10, overtaken by the likes of Shiba Inu’s SHIB and Telegram’s Toncoin, both of which saw double-digit gains.
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But Cardano didn’t stay down for long. It quickly clawed its way back into the top 10, not due to its own performance but because Toncoin unexpectedly wiped $7 billion off of its market cap. This sudden drop happened when data aggregators corrected Toncoin’s circulating supply, which had been inflated by including locked tokens.
At press time, Cardano ranked 9th with a market cap of $16 billion.
Insha’s Insights
Cardano’s dominance is slowly waning, particularly because its developments lag behind those of its competitors. For example, since meme coins are once again gaining popularity as the market hints at the onset of a bull market, this has led to DOGE, SOL, and SHIB pumping. However, not all hope is lost for Cardano, as it expects major developments of its own, including CIP-1694 and the Chang Hardfork, slated for later this year.
Charles Hoskinson Predicts Crypto to Decide US Elections
Charles Hoskinson does not mince words when it comes to his dissatisfaction with President Biden’s administration and its anti-crypto stance. In a recent social media post, the Cardano founder aired his frustrations, warning President Biden’s staunch anti-crypto stance might cost him another term in the White House.
Hoskinson noted that despite the crypto community’s extensive efforts, regulators remain persistent in their campaign against the industry. He lamented the prevailing anti-crypto narrative painted crypto as fundamentally harmful to the American people. This perception, he argued, effectively labeled “53 million Americans, regardless of their politics and preferences,” as soft criminals.
“If this President loses his job and crypto is the decider, no Democrat running in 2028 will be anti-crypto,” Hoskinson asserted.
The Cardano founder further noted that the current administration is campaigning against the crypto industry because it believes its actions have no political consequences. Hoskinson emphasized that it is up to the voters to create that political consequence by voting President Biden out.
Insha’s Insights
The crypto industry has evolved significantly, from being dismissed as a ‘useless’ fad to being hailed as the asset class of the decade by some of the world’s largest institutions. As the industry continues growing, crypto policies will become a decisive issue for American voters, particularly as more and more people add digital assets to their portfolios.
Hoskinson and Cardano Draw Javier Milei’s Attention
Charles Hoskinson has been a major advocate of Argentina’s self-styled “anarcho-capitalist” president, Javier Milei. The crypto pundit often praises the Argentine’s approach to running the country and interacts with the premier’s social media posts.
It appears that the love is mutual after Javier Milei reciprocated by interacting with Charles Hoskinson’s post about Argentina’s development scene and how it has contributed to Cardano.
“Argentina has some of the brightest minds in our industry, and it has been a privilege to work with them,” the Cardano founder said.
The interaction also sparked community members pointing to Cardano as the potential “technology company specializing in third-generation blockchain” for contacting Dario Epstein, Director at Research For Traders, which aims to establish itself in Argentina to develop knowledge and tech applications.
Cardano’s Intersect Joins Hyperledger
Cardano’s member-based organization Intersect announced joining the Hyperledger Foundation, marking a pivotal progression in its open-source strategy. With the new membership, Intersect looks to join other developers, enterprises, and organizations to jointly build, share, and improve blockchain frameworks and tools.
Insha’s Insights
Open source is a fundamental principle of Cardano and its branches, including the Cardano Foundation and Intersect. By partnering with Hyperledger, one of the largest open-source foundations for blockchain ecosystems, Intersect can strengthen its commitment to nurturing a vibrant ecosystem centered around open-source blockchain solutions.
Cardano’s Recovery Hopes Appear Dim
Cardano’s journey this year has been a lackluster echo of last year’s performance. ADA has struggled to post gains in the first quarter and appears to be following the same concerning path into the second quarter.
ADA hasn’t broken past $0.50 for over two months. Meanwhile, nearly all its counterparts, including Bitcoin, Ethereum, and Solana, have bounced back to their previous levels. At press time, Cardano traded at $0.45, with a daily trading volume of $300 million.
Adding to the concerns, the $0.45 level has historically been a sweet spot for Whales, who typically accumulate substantial amounts when ADA hovers around this price, often leading to double-digit gains. However, it seems confidence in Cardano is waning, as the usual buying frenzy is notably absent.
Current Outlook
Cardano has been locked in a tight range since April, struggling to gather enough momentum for a breakout. However, a closer look at the daily chart and candle patterns over the past two weeks reveals a market teetering on indecision, hinting at an imminent surge in trading activity over the upcoming weeks.
Coinglass’s ADA liquidation heatmap highlights a concentration of positions between $0.43 and $0.44, with another cluster above $0.46, setting the stage for two possible scenarios. If Cardano continues to show weakness, it could dip to $0.42 to fill orders before rallying to $0.46 and potentially breaking through the $0.50 mark. Alternatively, it could skip the $0.42 level altogether and attempt a direct shot at the $0.50 resistance.
The chances of Cardano’s breakthrough appear optimistic, given ADA’s positive long-to-short ratio, indicating a bullish sentiment among traders. However, it’s essential to consider that this scenario relies on fresh capital flowing into Cardano from other assets.
In its current form, Cardano is behind its competitors, particularly with the spotlight on Ethereum and its upcoming ETFs. This casts doubt on whether new funds will pour into ADA anytime soon.
On the Flipside
- ADA’s yearly growth has flipped negative, marking a 25% loss for the year.
- Market dynamics can be unpredictable, so it is essential to consider alternative perspectives and opinions when evaluating the potential future performance of ADA.
Why This Matters
Cardano’s underwhelming performance continues into its third month. Investors’ confidence in ADA has waned. However, according to the charts, good news looms on the horizon.
BlackRock inches toward the finish line:
BlackRock Files Updated ETH ETF Proposal: Here’s What’s New
Read the last DailyCoin Regular edition:
DailyCoin Bitcoin Regular: BTC Price Sees 11% Drop, Shift, or Hiccup?
