Cardano Expected to Decline to $0.40 Range – Is It Time to Buy the Dip?

Cardano (ADA) bulls are striving to maintain the crucial 200DMA level on Friday, concluding a challenging week for risk assets.

The Cardano price was last noted at approximately $0.63, slightly below the 200DMA at $0.66, having approached early February lows of $0.55 earlier in the session.

This week has been difficult for risk assets, with fears of a trade war unsettling the market and capital shifting towards “safe” assets like USD and US bonds amid growing concerns about US economic weakness.

This situation has particularly impacted crypto markets, causing Bitcoin (BTC) to drop below $80,000 at one point and Cardano to decline from around $0.80 to its current levels.

However, the cryptocurrency has not convincingly fallen below its 200DMA yet, providing bulls with hope that a recovery may be imminent.

The recent sell-off, combined with improvements in global liquidity conditions, indicates that risks may be shifting towards a potential rebound in the crypto market in the coming weeks.

Nonetheless, ADA remains entrenched in a downtrend until proven otherwise. If the upcoming months mirror mid-2024, similar to how recent months reflected late-2023/early 2024, Cardano could struggle to maintain its hold on the 200DMA for an extended period.

Assuming the broader crypto bull market is currently on hold due to heightened economic uncertainties, and until new catalysts emerge, it would not be surprising to see ADA decline back to the $0.40s.

However, rather than signaling the onset of a prolonged bear market, the long-term outlook for ADA remains positive. Here’s why.

Cardano’s Long-Term Outlook Remains Strong – Here’s Why

Macro and broader market conditions may weigh on ADA in the upcoming months.

However, in the background, several bullish developments are occurring in the US that could position the crypto industry and markets for many prosperous years ahead.

Firstly, the SEC, under its new leadership, has reversed its stance against the crypto industry, notably retracting its assertion that Cardano is a security.

The SEC no longer claims that ADA is a security. pic.twitter.com/vmFdMBegWs

— Cardano YOD₳ (@JaromirTesar) February 28, 2025

The crypto ecosystem is now free to expand in the US without the constant threat of SEC intervention, which could benefit all major layer-1 chains in the long run, including Cardano.

There also remains a possibility that Cardano could be included in some form of future US digital asset inventory.

Even if it is not, and the inventory consists solely of Bitcoin, that could still uplift the entire crypto market. This could become a significant theme later in 2024.

Cardano may be among a select few major altcoins to secure a spot ETF in the USA this year, potentially alongside Litecoin, Solana, XRP, and Dogecoin.

However, perhaps the most significant wildcard for Cardano in 2025 is the potential for the US treasury to select it as the public blockchain for government transactions.

Cardano is an ideal candidate for enhancing the efficiency of the US government. For this use case, 100% uptime and high decentralization are essential. pic.twitter.com/UYs1pQHxmI

— Cardano YOD₳ (@JaromirTesar) February 15, 2025

This remains pure speculation at this point. However, there may be some validity to these rumors, as Cardano founder Charles Hoskinson hinted earlier this month about an important upcoming meeting with a VIP in the White House.

Charles Hoskinson to meet with Elon Musk and David Sacks? pic.twitter.com/bSpbTsv5Ow

— TapTools (@TapTools) February 10, 2025

According to reports on X, the meeting could be scheduled for March 1st.

Charles Hoskinson to meet with a “Special Person” tomorrow? (March 1st) pic.twitter.com/pkVeA43f8U

— Investing Broz (@InvestingBroz) February 28, 2025

Of course, it is highly unlikely that the US government will ultimately adopt Cardano as its public ledger for transactions.

However, if this narrative gains traction, ADA’s recent bearish trend could come to an abrupt end.

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