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The collapse in the Cryptocurrency market continues to generate enormous problems among investors, both in Bitcoin and the rest of the alternative currencies. One of the assets bearing the brunt of this correction is Cardano (ADA) whose price lost parity with the USD.
As data from CoinMarketCap shows, the token is priced at $0.88 per unit. This translates to a negative return of 6% in 24 hours. Meanwhile, the currency is just 5% away from losing its gains from the last 30 days.
It is important to remember that ADA was one of the best performing coins during the November rally. The unconditional support of its founder, Charles Hoskinson, for Donald Trump allowed the currency to enjoy enormous popularity among crypto investors. The latter, added to the developments related to the network, generated healthy buying pressure for the token.
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However, Powell’s statements about adding Bitcoin to the US strategic reserves changed everything. Now, prices are falling thanks to a strong withdrawal of capital by investors. Thus, Cardano (ADA) price loses its key support above $1 per token.
ADA price retreats during the last few hours. Source: CoinMarketCap
Will Cardano price recover?
ADA’s recovery does not seem to be in doubt and its price will rise above $1 again. However, where there are discrepancies is the date on which this recovery occurs. Everything will depend on how events develop in the coming weeks.
The aforementioned statements by the president of the Federal Reserve become a cardinal element for investors in the world of cryptocurrencies. Jerome Powell’s attitude suggests that there will be a conflict of powers within the United States and the differences between him and Donald Trump are now evident.
Trump’s desire to create a Bitcoin-based strategic reserve does not appear to have the support of federal agencies. In that sense, the White House’s push in that direction and the Fed’s disdain for BTC suggest a political environment of instability.
Depending on how this context develops, one can get an idea of when the price of Cardano (ADA) will recover. It should not be lost sight of that this currency is one of the most stable in the crypto world. Meanwhile, its progress towards decentralization maintains it as one of the projects with the greatest long-term potential.
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