Cardano Price Analysis: February Set to be a “Crazy Month”?
The Cardano (ADA) price bubble could be in the process of popping, with the ADA bears in control of the market on Thursday and the crypto currently down 11% on the week.
Whilst the ADA is price is still more than 38% up versus its Monday price crash lows, bulls will be discouraged as to how the recovery has lost steam in recent days.
White House Crypto and AI Czar David Sacks’ press conference earlier this week gave the altcoin bulls little by way of fresh bullish catalysts to go off of.
I was honored to appear with @SenatorTimScott @RepFrenchHill @JohnBoozman @CongressmanGT at @BankingGOP to discuss how the Trump administration and Congress will work together to support digital assets as President Trump directed in his week one EO.pic.twitter.com/0VxhDz7Bj4
— David Sacks (@davidsacks47) February 4, 2025
The White House is currently studying the idea of setting up a digital asset reserve, and including crypto in its proposed sovereign wealth fund, and there is unlikely to be any news on these fronts for a while.
That means altcoin markets don’t have a lot to go on right now, which could explain the downbeat tone to trade.
Elon Musk’s proposal to move US treasury payments on-chain could spur some excitement, with some calling for Musk to choose Cardano.
WHY ELON MUSK SHOULD PUT THE U.S. TREASURY ON CARDANO 🇺🇸
• Scalable for a national economy – Capable of handling millions of transactions per second.
• Energy-efficient – Proof-of-stake model aligns with Musk’s push for sustainability.
• Unmatched security – Never been… https://t.co/AlObWj5pdG pic.twitter.com/AQvQnFDJs9
— TapTools (@TapTools) February 5, 2025
Charles Hoskinson is set to meet with the Trump administration this month and has promised February is going to be a “crazy month”.
Cardano Founder: “February is going to be a very crazy month. You’ll see.” $ADApic.twitter.com/CAusjsSUbW
— Altcoin Daily (@AltcoinDailyio) February 1, 2025
Does that mean a big announcement is coming? Well, traders don’t appear to be pricing anything into the Cardano price right now.
Where Next for the Cardano (ADA) Price?
Focus in the coming days will switch to macro, with important US jobs data coming up on Friday that could impact Fed easing expectations and broader financial market sentiment.
As long as the data doesnt do anything to push back against Fed rate cut expectations for this year, that could facilitate a near-term price recovery.
But markets remain on edge owing to fears of Trump igniting a new global trade war, this of course bein the catalyst behind Monday’s market rout.
Me with $187 in crypto worrying about Global trade wars pic.twitter.com/P8Kq8zqG59
— naiive (@naiivememe) February 3, 2025
Traders should brace for two way chop in the Cardano price in the coming weeks, as investors weigh up positive like the pro-crypto policy shift in the USA against negatives, like potential macro headwinds.
As of right now, a retest of the 200DMA around $0.6222 seems likely, with a retest of Monday’s lows in the $0.51 region also very likely.
However, the prospect of ADA’s potential eventual inclusion in a US digital asset stockpile, or of being picked as the US treasuries new blockchain to run on, means that price dips will likely continue to be bought into.
One would assume, if the Trump administration is correct in its ascertain that it aims to bring about a new golden era for crypto in the USA, that the Cardano price’s long-term outlook remains very strong.
If investors can weather near-term volatility, a surge beyond late 2024 highs in the $1.30 area and back towards record highs above $3.0 could be on the cards.
Cardano could still have 5x or more potential from its current levels before the end of this cycle, making it a strong candidate for best crypto to buy now.
Source: cryptonews.com
