Will Cardano’s Bitcoin Partnership Save ADA? Or Lead to a 60% Crash?

Cardano’s ADA continues to struggle, failing to break key resistance levels despite a major move to engage the $1.3 trillion Bitcoin ecosystem. Recently, an analyst sparked debate by claiming “Bitcoiners don’t care” about ADA, fueling fresh discussion in the crypto community. This sentiment suggests Bitcoin maximalists may not significantly impact ADA’s price movements.

Why Cardano Price is Down Today

Currently, ADA trades at $0.3415, marking a 4.1% drop over the last 24 hours. Bitcoin’s decline under $70,000, following a recent U.S. stock market downturn that erased $953 billion, appears to drive this slide. The broader crypto market fell by 5.3%, with Bitcoin priced at $69,551 as of 00:53 a.m. EST. Cardano’s price decrease highlights how sensitive altcoins remain to broader market trends, particularly Bitcoin’s price.

Bitcoiners Unfazed by Cardano’s Attempt to Tap Bitcoin’s Market

A crypto analyst argued that Bitcoin enthusiasts do not prioritize Cardano. This negative sentiment came right after the Cardano Foundation announced its biggest attempt yet to engage Bitcoin’s market. In response, a heated debate unfolded across crypto X spaces, where Bitcoin enthusiasts speculated that Cardano aims to become a Bitcoin Layer 2 network. ADA supporters, however, quickly countered, asserting that Cardano will remain a standalone Layer 1 blockchain with a connection to Bitcoin, rather than a dependent layer.

Concerns About Cardano’s Bitcoin Connection

Re: CARDANO x BITCOIN
The news of a bridge between the 2 networks is long term bullish for $ADA. But, some of the messaging is misleading. 🤨
I did a little poking around and here’s what you need to know…
1- Native $BTC is not coming to Cardano. It is a wrapped asset.…
— Joe 2.0🎙️ (@joe4deadcat) October 31, 2024

Since Cardano’s Bitcoin connection announcement, ADA’s price has continued to decline, with some investors questioning its relevance. Analyst Joe 2.0 highlighted key issues, noting that the Bitcoin assets on Cardano will be wrapped, not native BTC. He also expressed concerns over the trustworthiness of the bridge and doubted Cardano’s ability to access Bitcoin liquidity in its current form. Bitcoin enthusiasts, especially those committed to the “Not Your Keys, Not Your Coins” mantra, remain wary of any protocol requiring fund transfers from personal wallets. Until the Cardano Foundation addresses these concerns, ADA’s price may remain subdued.

ADA Price Prediction: Possible 60% Crash Ahead?

Cardano’s price action appears locked in a bear pennant, signaling a potential 60% price drop to $0.13. With the price hovering near the pennant’s lower edge, a breakdown could push ADA lower, though support around $0.22 might briefly hold off further losses. However, with intense selling pressure, ADA could still reach the $0.13 mark, aligning with a historical pattern that suggests a significant drop before any substantial rally.

To reverse this bearish outlook, Cardano’s price must break above the pennant. If successful, ADA could aim for resistance at $0.5 and possibly $0.81, offering hope for a more bullish trajectory. Until then, ADA’s price remains vulnerable to further declines.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.