The Cardano (ADA) price has reversed 4% lower on Friday, having once again found strong resistance at its 21DMA and amid comments from the crypto’s 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 remain 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 made it clear to listeners 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, bring them under its jurisdiction.
ADA has been explicitly labeled as a security by the SEC, 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 via other means, including its SAB 121. The SAB 121 is being challenged by the US House, though 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 Cardano price is threatening a bearish breakout as it finds resistance at its 21DMA. Source: TradingView
And the ADA price could go even lower. Adoption stories are keeping the prices of some of its rivals elevated, like Toncoin.
But ADA lacks a strong adoption story, because its struggling to achieve any meaningful adoption.
As per DeFi Llama, Cardano only has a TVL of around $350 million. That puts it 26th in the TVL rankings, behind little-known chains like 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 lack of regulatory clarity could see it 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
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