Cardano (ADA) has returned to a bearish trend following its failure to breach the $0.77 resistance. The altcoin has been facing a decline, and recent technical indicators suggest that the bearish momentum could continue.
A surge in negative market signals has contributed to the continued downward movement, potentially pushing ADA below the critical $0.50 support level.
Cardano Investors’ Losses Surge
Currently, Cardano is experiencing the formation of a Death Cross, which marks a significant shift in market sentiment. The 200-day exponential moving average (EMA) recently crossed over the 50-day EMA, signaling the end of the altcoin’s five-month bullish momentum.
This bearish crossover is often seen as a precursor to further price declines, as it suggests that market sentiment is shifting to a more cautious, bearish outlook.
The Death Cross is a classic sign of weakening investor confidence, which has been compounded by poor market conditions. As ADA struggles to regain upward momentum, the bearish trend is likely to persist unless there is a significant change in market sentiment.
Moreover, investors appear to be moving away from ADA, further fueling the decline in its price.
In addition to the Death Cross, the overall macro momentum for Cardano is also showing signs of weakness. The MVRV (Market Value to Realized Value) Long/Short Difference has dipped below the neutral line, indicating that long-term holders (LTHs) are on the verge of losing their profits.
If this trend continues, the profitability of LTHs could shift to short-term holders (STHs), further intensifying the bearish pressure.
A continued drop in the MVRV Long/Short Difference below the zero line would signal that investors’ belief in ADA’s recovery is waning. With LTHs potentially seeing their profits evaporate, there is little incentive for them to hold on to their positions, which could lead to further price declines.
Cardano MVRV Long Short Difference. Source: Santiment
ADA Price Decline Likely
Currently, Cardano’s price is hovering at $0.57, holding above the critical support of $0.54. However, this support is the last line of defense before ADA potentially falls below $0.50. If the price continues its downward trajectory, a drop to $0.50 is a real possibility.
Should the bearish trend intensify, ADA could easily fall through the $0.50 support, extending the losses and pushing Cardano toward $0.46. This would significantly diminish any chances of a recovery and deepen the ongoing downtrend.
The only way to reverse this bearish outlook would be for ADA to secure $0.57 as a support floor. A successful break above $0.63 could restore confidence among investors, which may help avoid further losses and provide a path for recovery.
XRP has been consolidating over the last few days, managing to stay above the $2 mark. However, after validating a four-month-long downtrend earlier this month, the altcoin is struggling to sustain its current position.
As investor interest wanes, XRP may face challenges in maintaining upward momentum.
XRP Is Losing Investors’ Interest
New addresses associated with XRP have hit a 5-month low, signaling a decline in new investor interest. This suggests that XRP is losing traction within the market as fresh capital fails to flow into the asset. The absence of new buyers could make it difficult for XRP to maintain its position above $2.
The falling demand is concerning as XRP’s price growth is often supported by new market participants. With fewer investors entering the market, the altcoin may face a prolonged period of stagnation. Unless there is a shift in demand, XRP’s ability to maintain its price level could be compromised.
The overall macro momentum for XRP remains weak, as reflected by technical indicators like the RSI. Currently stuck below the neutral line of 50.0, the RSI suggests that XRP is still in the bearish zone. This indicates a lack of bullish momentum, which could prevent the altcoin from seeing any significant rallies in the near term.
In addition, the broader market sentiment continues to be bearish, which further impacts XRP’s potential for recovery. Unless the market turns around or the altcoin finds new sources of demand, XRP’s price will likely remain suppressed.
XRP’s price is currently at $2.10, holding above the $2.02 support level but facing resistance at $2.16. The ongoing downtrend that has persisted since the beginning of the year continues to weigh heavily on the altcoin. If the price fails to break through the resistance level, XRP may try to push higher.
The current market conditions could prevent XRP from surpassing $2.16. However, if the price loses the $2.02 support, it may drop to the next support level of $1.94. Should this happen, the altcoin could experience a more significant decline, potentially reaching as low as $1.79.
Alternatively, if XRP manages to breach the $2.16 resistance, it could rally towards $2.27. With a change in investor sentiment and market conditions, this could propel the altcoin to $2.40, invalidating the bearish outlook.
Bitcoin (BTC) surged past the $90,000 mark following reports of its potential preferential treatment in President Donald Trump’s proposed US crypto reserve strategy.
The speculation comes ahead of the White House Crypto Summit, which Trump will host and feature top digital asset industry executives.
Trump’s Bitcoin Reserve Plan Unveiled
Citing Commerce Secretary Howard Lutnick, The Pavlovick Today revealed that the strategic cryptocurrency reserve would be on Friday’s agenda for President Trump’s White House Crypto Summit.
“The President definitely thinks that there’s a Bitcoin strategic reserve. Now there will be the question of, how do we handle the other cryptocurrencies? And I think the model is going to be announced on Friday,” Lutnick reportedly stated.
Reportedly, Trump envisions a strategic Bitcoin reserve, distinguishing it from other cryptocurrencies. Lutnick suggested Bitcoin would receive unique status under Trump’s plans.
“So Bitcoin is one thing, and then the other currencies, the other crypto tokens, I think, will be treated differently—positively, but differently,” he added.
Following this news, Bitcoin reclaimed the $90,000 psychological level, with BTC trading for $90,097 as of this writing. According to BeInCrypto data, this represents a surge of over 7% since Wednesday’s session opened.
The prospective preferential treatment for Bitcoin is unsurprising given its heft as the pioneer crypto. Similarly, its commodity status, like Ethereum (ETH), also positions it for possible privilege.
In a recent Truth Social post, he emphasized his administration’s commitment to elevating the crypto sector. Specifically, Trump announced that the US crypto reserve would include XRP, SOL, and ADA alongside Bitcoin and Ethereum.
However, Lutnick’s comments suggest that Bitcoin may receive special status under the new framework. While Trump’s announcement has fueled bullish sentiment in the Bitcoin market, it has also sparked significant debate.
Some crypto leaders have expressed skepticism about including alternative cryptocurrencies (altcoins) in the US reserve. Critics argue that favoring Bitcoin while treating other tokens differently could create market distortions.
Another major talking point is Ethereum’s role—or lack thereof—in the prospective crypto reserve strategy. The White House Crypto Summit will feature leaders from ecosystems running on Ethereum, but the blockchain lacks representation.
Notwithstanding, the announcement of a strategic crypto reserve has led to speculation about an incoming altseason. Tim Haldorsson, founder of Luna Strategy, told BeInCrypto that Trump’s plan could drive increased investment into altcoins.
However, Henrik Zeberg Jensen, the head of Macroeconomics and fund manager of Swissblock Technologies AG, has a different opinion.
“Trump does not stand as a testimony to or a proof of which tokens will have success. Look at his meme coin [TRUMP]! No usability- and driven by speculation. The success of any token in the long run will be based on the usability of the token in future solutions which will lift productivity and reduce cost. Trump’s picks in that respect seem arbitrary,” Zeberg told BeInCrypto.
Should Bitcoin get preferential treatment in the crypto reserve, altcoins could still benefit. Historically, Bitcoin-led rallies have often paved the way for altcoin surges.
Welcome to the US Morning Crypto News Briefing—your essential rundown of the most important developments in crypto for the day ahead.
Grab a coffee to see what analysts say about Bitcoin amid the showdown between BTC behemoth Strategy (formerly MicroStrategy) and Jack Mallers’ investment firm, 21 Capital. With their Bitcoin models coming into question, is there a specific definition of what winning means in Bitcoin?
Strategy Grows Bitcoin Stockpile, Buys $1.42 Billion in BTC
Strategy announced that it recently purchased another 15,355 BTC worth approximately $1.42 billion at an average price of $92,737 last week.
The firm currently holds 553,555 BTC, valued at approximately $52.7 billion. The average buying price is $68,459, and the unrealized profit is $14.8 billion.
“By continuing to grow its Bitcoin holdings, the company maintains its status as a major force in the cryptocurrency market, drawing interest from investors and industry analysts. Strategy is the largest Bitcoin Treasury Company, an independent, publicly traded business intelligence company, and a Nasdaq 100 stock,” Phoenix reported.
A recent US Crypto News publication highlighted the advent of 21 Capital. The Bitcoin investment firm sprouted after Cantor Fitzgerald, SoftBank, Tether, and Bitfinex pooled $3 billion in capital.
Based on sentiment, this new venture could inadvertently challenge Strategy’s position at the helm of corporate Bitcoin ownership in a model sense. According to 21 Capital, Strategy size could make increasing its Bitcoin per share difficult, a metric investors tend to consider.
Amid chatter that 21 Capital could threaten the Michael Saylor-led firm, BitStrategy, a shareholder at Strategy, challenged the prospective market rival’s business model.
Tension Grows in Bitcoin Treasury Space
In a detailed post on X (Twitter), BitStrategy acknowledged the brewing tension in the Bitcoin treasury arena. However, it holds that Strategy is way ahead of the competition.
“Their company is in direct competition with ours, and they seek to exploit a perceived vulnerability in our structure, openly highlighting their strengths relative to ours to win investment,” BitStrategy challenged in a recent post.
Beyond BTC Yield, also reported in a recent US Crypto News publication, the firm initiated key performance indicators months ago- BTC Gain and BTC $ Gain.
Bitcoin Gain multiplies the BTC Yield by Strategy’s aggregate balance, reflecting the scale of the firm’s operations.
Bitcoin $ Gain takes this further, converting the BTC Gain into dollar terms, for added transparency.
This proactivity by Strategy suggests a commitment to defend its position as a leading Bitcoin-holding corporation amidst rising rivals.
“You can fake an impressive BTC Yield. You cannot fake an impressive BTC Gain,” BitStrategy chimed.
However, analyst KenjiKoshu argues that while Strategy may show substantial Bitcoin gains, smaller companies like 21 Capital could achieve higher Bitcoin per share.
“As someone who has done deep thinking about why MSTR is undervalued, it might be true BTC gain can still be substantial if not higher for MSTR. On a per-share basis, however, which would be what supports the stock; it will be hard to deny a smaller, similarly reputable company is going to make more Bitcoin per share when on the same strategy,” the analyst wrote.
This outlook aligns with sentiment from 21 Capital that Strategy’s large size impedes increasing its Bitcoin per share.
However, BitStrategy articulated that the point of BTC Gain and BTC $ Gain signals the importance of a whole-of-company view of performance relative to a per-share view.
Per the shareholder, there is no agreed-upon conventional valuation methodology for Bitcoin companies. This means any metric is somewhat arbitrary.
Investors increasingly turn to digital assets as a safe haven, with Bitcoin becoming a hedge against the US dollar’s volatility as crypto inflows surge to $3.4 billion.
