ADA’s Risk of Collapse: 200 DMA Break and Potential 50% Loss – BlockNews

• Cardano Struggles with Bearish Sentiment: Cardano’s price remains under pressure, sitting at $0.7250 after a small rebound, but still down 40% from recent highs due to lack of significant developments and macroeconomic challenges.
• Trump’s Snub and Market Outlook: Cardano’s inclusion in the U.S. crypto stockpile, not the strategic reserve, and the absence of Charles Hoskinson at the White House summit have dampened investor optimism.
• Potential for Further Decline: With ongoing bearish trends and the broader market’s struggles, Cardano could see a drop to $0.55, but a rebound to previous highs could be possible if the macro environment improves.

Cardano (ADA) is hanging on at its 200-day moving average (DMA) and managing to stay above its recent lows. But, let’s be real—the bullish hype around Cardano has taken quite a hit in recent weeks. With the macroeconomic outlook growing darker, there’s growing concern that ADA might be heading for a big tumble over the next few weeks.

Cardano’s Struggles and The Trump Effect

After taking a beating over the past week, ADA has managed a small rebound, trading at around $0.7250—an 11% recovery from earlier lows of $0.65. However, it’s still down nearly 40% from the highs it saw just nine days ago, right after President Trump announced a crypto reserve that included Cardano in a tweet.

In the end, though, Cardano made it into the U.S. crypto stockpile set up by Trump, not the coveted strategic reserve. And unlike the Bitcoin reserve, there are no current plans for additional Cardano purchases. To make matters worse, Charles Hoskinson, Cardano’s co-founder, wasn’t invited to last week’s White House crypto summit, a snub that stung ADA investors. Many had hoped that Hoskinson might land a role as a crypto advisor, possibly boosting Cardano’s U.S. adoption. Now, with that door seemingly shut, Cardano’s price is at risk of tumbling further, especially as the broader market outlook sours.

Could Cardano Price Dive to $0.55?

With bullish narratives about Cardano losing steam and the crypto market facing tough times ahead, ADA could face more underperformance. The market’s been reeling from growing fears about the Trump administration’s policies, particularly D.O.G.E austerity and ongoing trade wars, which have dampened investor appetite.

Stocks in the U.S. have slid considerably from their yearly peaks, dragging crypto down with them. If the U.S. economy continues to struggle in the coming months, this trend in the financial markets isn’t likely to reverse anytime soon. This creates a risky environment for major cryptos like Cardano, which are highly sensitive to market sentiment.

Cardano is currently testing its 200DMA for the third time in just over a month, and a break to the downside seems increasingly likely. If this happens, ADA could break through February’s lows, potentially sending the price tumbling toward the late-2024 range of $0.27-$0.41—a drop of up to 50% from its current level.

Is the Cardano Dip a Buying Opportunity?

If Cardano does drop back to those low levels, it could create a strong buying opportunity with great risk-reward potential. After all, the current macroeconomic pain is unlikely to last forever. It might stretch out for a few months, or even a year, but once the macro environment improves and liquidity floods back into the market, the crypto space could experience another rally.

The bullish narratives for crypto—especially global adoption, growing interest in Bitcoin, and a friendlier regulatory environment in the U.S.—remain intact. In fact, Cardano could easily 10x from its lows in the $0.40 range, returning to its all-time highs near $4 by the end of Trump’s four-year term.

However, while that potential upside is tempting, investors should be cautious. Cardano is still a speculative asset, relying heavily on community hype and not enough real-world adoption to back it up. It might be wise to consider balancing any Cardano investments with bigger, more established cryptos like Bitcoin, Ethereum, or Solana, just to play it safe.