The Cardano (ADA) price reversed 4% lower on Friday, once again finding strong resistance at its 21DMA and amid comments from its founder Charles Hoskinson that US President Joe Biden is trying to kill crypto.
ADA was last changing hands around $0.445, with the 21DMA at $0.467, having blocked rallies for over a week.
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“The Biden administration is engaged in a coordinated effort to kill crypto.”
So tweeted Charles Hoskinson, creator of Cardano.
“This November, if you vote for J. Biden as a crypto holder, understand that this administration’s intention is to destroy the U.S. crypto… pic.twitter.com/6SLqn9u2b8
— Nfinity Labs (@NfinityLabs) May 10, 2024
That’s a strong sign that bears are in control of this market.
As traders monitor the outlook for the Cardano price, they are also keeping comments from its founder on their radar.
In a broadcast on X, Hoskinson argued that the Biden administration is trying to kill crypto.
“This November, if you vote for J. Biden as a crypto holder, understand that this administration’s intention is to destroy the US crypto industry,” he noted.
These claims are not without merit. Under Biden, the SEC has taken an aggressive regulation-by-enforcement approach to the crypto industry.
The agency’s underlying assumption is that virtually all cryptos aside from Bitcoin are actually securities, bringing them under its jurisdiction.
The SEC explicitly labeled ADA as a security, which weighed heavily on its price in 2023.
The Biden administration has been accused of conducting “operation choke point 2.0” to debank crypto firms in the US.
The SEC has also tried to stifle crypto through other means, including its SAB 121. The US House is challenging SAB 121, while Biden openly opposes these efforts.
Cardano Price Prediction – Is ADA Going to Zero?
The near-term outlook for the Cardano (ADA) price is downbeat. The cryptocurrency has found strong resistance at its 21DMA going all the way back to late March.
With the bears very much in control, a retest of recent lows around $0.40 looks likely.
The ADA price could go even lower. Adoption stories are increasing the prices of some of its rivals, like Toncoin.
ADA lacks a strong adoption story because it’s struggling to achieve any meaningful narrative, however.
As per DeFi Llama, Cardano’s TVL is only around $350 million, ranking 26th behind Ultron, MultiverseX, and Hyperliquid.
That suggests its current market cap ranking of 10th could be an overvaluation.
While ADA is unlikely to go to zero, its lack of adoption and regulatory clarity could cause it to go much lower.
Alternative to Consider – Investing in Presales
With the ADA outlook grim, investors will be looking for alternatives with a better chance of delivering short-term gains.
An alternative high-risk, high-reward investment strategy worth considering is getting involved in crypto presales.
Upcoming web3 protocols frequently sell their native tokens at an early-bird discount to fund development.
If investors can reliably identify high-potential presales, they can make a great return.
With so many presales vying for investor funds, knowing where to start can be daunting.
Luckily, the team at Cryptonews compiled a list of what they deem to be the best crypto presales.
See the 20 Crypto Presales
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
Read the full article here
