Cardano’s Price Drops 40% but Long-term Bulls Stay Positive

Cardano’s price has recently stabilized around $0.70 following a significant 40% drop last week, despite its recent entry into the US Strategic Crypto Reserve. The cryptocurrency experienced a rapid 80% surge after the announcement by President Donald Trump on March 2 but has since faced a decline due to growing market uncertainty.

The digital coin witnessed a swift increase from $0.64 to $1.14 in a single day following Trump’s endorsement, along with Bitcoin, XRP, and Solana, for inclusion in the government program. Trading volume has spiked to $1.4 billion daily in March compared to February’s average of $720 million.

Charles Hoskinson, the founder of Cardano, expressed confidence in the cryptocurrency’s future, stating, “Cardano’s roadmap is solid, and institutional adoption is just beginning. We expect major ecosystem growth in 2025.” However, the crypto community remained divided on the reserve’s composition. Coinbase CEO Brian Armstrong suggested that having only Bitcoin in the reserve would be the most straightforward option, considering it as a clear successor to gold. He also proposed the idea of a market cap-weighted index of crypto assets as a viable alternative.

On the other hand, Arthur Hayes, former CEO of BitMEX, questioned the feasibility of the entire plan, referring to it as mere words without substantial action. Despite significant investments from whales, with large investors purchasing approximately 130 million ADA valued at over $94 million immediately after the announcement, ADA’s price did not witness a sustained positive trend. These same investors have been gradually selling around 2 million ADA per week, indicating a lack of strong conviction in the short term.

As Cardano continues to navigate the volatile cryptocurrency market, its long-term prospects appear positive, with key figures within the industry expressing optimism for future growth and adoption. While short-term price fluctuations may cause uncertainty, the core fundamentals of the cryptocurrency project remain robust, attracting interest from both retail and institutional investors. With ongoing developments and potential advancements in the pipeline, Cardano looks set to play a significant role in the evolving landscape of digital assets.