Cardano Price Forecast as Hoskinson States Biden is ‘Harming Cryptocurrency’ – Is a Drop to Zero Possible for ADA?

The price of Cardano (ADA) declined by 4% on Friday, once again encountering significant resistance at its 21DMA, coinciding with remarks from its founder Charles Hoskinson that US President Joe Biden is attempting to undermine the crypto sector.

ADA was last trading at approximately $0.445, with the 21DMA positioned at $0.467, which has hindered upward movements for over a week.

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“The Biden administration is engaged in a coordinated effort to kill crypto.”

So tweeted Charles Hoskinson, the 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

This indicates a strong presence of bearish sentiment in the market.

As traders assess the prospects for the Cardano price, they are also attentive to comments from its founder.

In a broadcast on X, Hoskinson contended that the Biden administration is attempting to eliminate 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 stated.

These assertions have some basis. Under Biden, the SEC has adopted an assertive regulation-by-enforcement strategy towards the crypto sector.

The agency’s fundamental premise is that nearly all cryptocurrencies, apart from Bitcoin, are classified as securities, placing them under its oversight.

The SEC has explicitly categorized ADA as a security, which significantly impacted its price in 2023.

The Biden administration has faced accusations of executing “operation choke point 2.0” to restrict banking access for crypto firms in the US.

The SEC has also sought to limit crypto through other measures, including its SAB 121. The US House is contesting SAB 121, while Biden has publicly opposed these initiatives.

Cardano Price Prediction – Is ADA Going to Zero?

The short-term outlook for the Cardano (ADA) price appears pessimistic. The cryptocurrency has encountered substantial resistance at its 21DMA since late March.

With bearish forces firmly in control, a retest of recent lows near $0.40 seems probable.

The Cardano price is at risk of a bearish breakout as it faces resistance at its 21DMA. Source: TradingView

The ADA price could potentially decline further. Adoption narratives are boosting the prices of some competitors, such as Toncoin.

ADA, however, lacks a compelling adoption narrative as it struggles to establish any significant storyline.

According to DeFi Llama, Cardano’s total value locked (TVL) is approximately $350 million, ranking 26th behind Ultron, MultiverseX, and Hyperliquid.

This suggests that its current market cap ranking of 10th may be an overestimation.

While ADA is unlikely to reach zero, its limited adoption and regulatory uncertainty could lead to a more substantial decline.

Alternative to Consider – Investing in Presales

Given the bleak outlook for ADA, investors may seek alternatives that offer a better opportunity for short-term gains.

A high-risk, high-reward investment strategy worth exploring is participation in crypto presales.

Emerging web3 protocols often offer their native tokens at discounted rates to support development.

If investors can effectively identify promising presales, they may achieve significant returns.

With numerous presales competing for investor interest, determining where to begin can be challenging.

Fortunately, the team at Cryptonews has compiled a list of what they consider to be the top crypto presales.

See the 20 Crypto Presales

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