Cardano has faced a series of setbacks recently, with its price failing to break through key resistance levels and subsequently experiencing a decline.
These struggles have left traders and investors feeling uncertain and bearish. The combination of weak inflows and skepticism among traders has stalled Cardano’s recovery.
Cardano Needs To Find Strength
For the past week, Cardano’s funding rate has fluctuated between positive and negative values, reflecting the unstable sentiment in the market. This fluctuation indicates that traders are attempting to capitalize on the price decline by placing short contracts. At the time of writing, short contracts dominate long positions, signaling that traders remain cautious and expect further declines.
This bearish sentiment is reinforced by the fact that short positions are outpacing long positions. As a result, the market is under heavy downward pressure, and there is little indication that a strong recovery is imminent unless there is a significant shift in trader behavior.
Cardano’s macro momentum is also impacted by a lack of investor support, as shown by the Chaikin Money Flow (CMF) indicator. The CMF has been stuck below the zero line for the past three weeks, indicating that money is flowing out of Cardano, not into it. This suggests that investor confidence is low, which is a major barrier to price growth.
Although the CMF recently showed a slight uptick, the broader trend of negative netflows remains intact. The lack of sustained inflows signals that investor sentiment has weakened, making it challenging for Cardano to break free from its current bearish trend.
Cardano’s price currently sits at $0.68, just under the crucial resistance level of $0.70. The altcoin appears to be on track for consolidation between $0.77 and $0.70. However, this consolidation could signal a lack of upward momentum and indicate a prolonged period of stability.
If ADA’s bearish sentiment persists, Cardano’s price could struggle to break the $0.70 barrier and instead slide further toward $0.62. This would mark a further decline and signal that the current price action is unlikely to result in a recovery without substantial shifts in market conditions or investor sentiment.
On the other hand, if investors begin to see the current price as an opportunity, Cardano could breach $0.70 and potentially rise beyond $0.77, towards $0.85. This would invalidate the bearish outlook, opening the door for a more significant price rally. However, without a notable increase in support, Cardano’s price is likely to remain under pressure.
Speculation about Nvidia adding Bitcoin to its treasury reserves has surfaced recently. These unconfirmed reports lead to questions about the potential for increased institutional adoption of Bitcoin and the possible performance of such a move for Nvidia, whose stock value has fallen considerably this year.
BeInCrypto interviewed representatives from Banxe, FINEQIA, CoinShares, Bitunix, and Acre BTC to discuss Bitcoin’s potential benefits for Nvidia and explore whether such an investment would ultimately benefit the company in the long run.
Rumors of Nvidia’s Potential Bitcoin Investment
Over the past few weeks, several reports have surfaced across social media suggesting that Nvidia, a pioneer in GPU-accelerated computing, is considering adding Bitcoin to its balance sheet.
These reports remain purely speculative at the time of press, given that Nvidia has not made any official statements on the topic. When BeInCrypto reached out for clarification, an Nvidia spokesperson declined to comment.
Even as rumors, these reports highlight the significant impact of such a decision on Bitcoin’s public perception. Given Nvidia’s current economic circumstances, marked by a substantial drop in stock value, an announcement of this nature would not be completely unexpected.
As such, Nvidia’s stock price has taken a hit. According to recent reports, Nvidia stock has fallen 35% since its latest price peak in January.
Nvidia’s stock reacted especially poorly to the news that China’s Huawei Technologies is testing a new AI chip potentially more powerful than Nvidia’s H100.
Given these circumstances, Nvidia can mitigate current economic challenges by diversifying its treasury assets.
Should Nvidia Consider Adding Bitcoin to Its Balance Sheet?
Such a move would significantly alter how other institutional investors view Bitcoin, potentially encouraging more companies to adopt a similar strategy. The crypto community would likely celebrate the news, believing it would solidify Bitcoin’s legitimacy as an asset class.
However, the extent to which Nvidia requires Bitcoin for stability remains controversial.
Risks of Adding Bitcoin to Nvidia’s Treasury
As it is, Nvidia already has other strategies that help the company hedge against volatility and inflation. Adding Bitcoin into the mix may seem excessive.
This becomes especially true when considering just how volatile Bitcoin itself can be. Though the asset can generate significant gains during bullish periods, the losses it can cause are equally severe.
As such, Bitcoin might not be the natural choice to defend Nvidia from its current stock declines. An investment of this kind would need to reflect a long-term strategy rather than an impulse decision.
Would BTC Even Make a Difference on Nvidia’s Share Price?
Bitcoin has demonstrated high returns over the long term, though with considerable volatility. For companies able to withstand the associated risks, including large price fluctuations, it offers the potential for significant future profits.
With its substantial financial resources, Nvidia could absorb Bitcoin’s volatility without a major impact on its balance sheet. In this sense, the company has little to lose, but also little to gain.
Ultimately, Nvidia’s decision to invest in Bitcoin hinges on timing and urgency, particularly given recent developments that have alleviated some pressures on the company.
Easing Export Restrictions: A Boost for Nvidia
Last week, the Trump administration announced its plans to roll back certain Biden-era export restrictions on advanced semiconductor chips.
Biden’s ‘AI Diffusion Rule’ established these restrictions to enhance US technological leadership by preventing advanced chips from being diverted to countries of concern, especially China. Given that China was Nvidia’s main buyer, the rule significantly hampered its sales.
A rollback would be highly advantageous for Nvidia’s sales, especially amid this new wave of chipmakers.
Similarly, the recent US-China tariff pause led to Nvidia’s stock price rise. Despite its temporary nature, the news is a positive sign for the company, promising reduced uncertainty and potential gains in sales and supply chain stability.
Considering these developments, adding Bitcoin to Nvidia’s balance sheet may no longer be urgent. If Nvidia were to make such a decision out of haste, it might also drive away traditional investors and long-time buyers.
Many areas of traditional finance remain highly skeptical of Bitcoin due to its short history and highly volatile nature. If Nvidia adds Bitcoin as a treasury asset, traditional investors might view it as a poor decision, potentially alienating long-time clients.
Webus International, a Nasdaq-listed Chinese AI solutions company, announced today that it’s planning to invest up to $300 million in an XRP reserve. The firm claims that this strategy is primarily aimed at facilitating cross-border payments.
Additionally, Webus aims to use XRP to help expand an AI-native company’s other blockchain-related development ambitions. Depending on the investment’s success, the firm may incorporate on-chain solutions in several fields.
Webus is not the only Chinese company considering a massive crypto investment this month, but its XRP reserve plan seems more deliberate.
Two weeks ago, Addentax Group, a logistics firm, considered investing $800 million in BTC and TRUMP. This may have been an attempt to secure tariff relief, and Addentax barely mentioned its crypto ambitions.
On the other hand, Webus described a long-term vision for the XRP reserve in explicit detail:
“These strategic developments have the potential to create a powerful synergy between our domestic and international operations. The integration of an XRP blockchain integration has the potential to revolutionize how we handle cross-border payments for both partners and travelers worldwide,” claimed Nan Zheng, CEO of Webus.
In other words, Webus’ AI solutions cater to customers around the globe, and DeFi may help smooth over recurring problems. Chinese firms can experience difficulties with bank processing across borders, but XRP may provide a solution.
Webus mentions using the tokens for lending, shareholder guarantees, third-party credit, and other core financial interactions.
Furthermore, a $300 million investment could help an AI-specific firm access the other advantages of Web3. In addition to improving cross-chain payment operations, XRP integration will help develop the company’s blockchain infrastructure.
XRP Reserve Asset
Webus International Limited (NASDAQ: WETO), a recognized provider of AI-driven mobility solutions specializing in premium, customizable chauffeur services for travelers worldwide, today announced two complementary strategic developments that significantly… https://t.co/xTlYUiWWxNpic.twitter.com/kpmAHEmIsJ
— Chad Steingraber (@ChadSteingraber) May 29, 2025
Webus’ press release mentions a few concrete goals like on-chain record keeping, loyalty tokens, and customer wallets.
Meanwhile, the company’s stock price has surged over 60% in after-market prices since the announcement.
XRP is already a leading cryptoasset, but $300 million is a substantial amount of money by any metric. If Webus helps integrate the token into the Chinese AI ecosystem, it could prove highly beneficial for XRP and the company.
Depending on the success of this reserve strategy, Webus could be setting a new trend for crypto’s worldwide integration.
