Despite significant news on Monday that Bitcoin bridging company BitcoinOS successfully bridged BTC from the Bitcoin blockchain to Cardano and back for the first time, Cardano (ADA) prices remained under pressure in early Tuesday trading.
BitcoinOS successfully brought 1 BTC token onto the Cardano blockchain and then smoothly sent it back to Bitcoin.
But this news failed to generate much of a stir, as Cardano's price continued to drop to around $0.65, breaching key technical support levels.
As expectations rise that U.S. President Donald Trump will abandon the trade war, the cryptocurrency market faces pressure again after a strong recovery rebound in recent weeks.
Currently, ADA has fallen over 10% from its late April high, dropping below the 21 and 50-day moving averages, as well as the short-term support level around $0.67.
The Federal Open Market Committee (FOMC) will announce its interest rate decision on Wednesday, and market tensions are naturally rising—central banks may issue a tough monetary policy guidance that could pressure risk assets.
Traders also seem to be weighing new developments related to the trade war, which has become a catalyst for the recent volatility in the cryptocurrency market.
These macro themes are currently drawing attention to the behind-the-scenes development of Cardano, such as BitcoinOS's recent successful Cardano bridging demonstration.
Cardano plans to become the preferred Bitcoin DeFi sidechain in the coming year.
According to renowned cryptocurrency analyst Dan Gambardello, this positions Cardano as the 'best-positioned blue-chip altcoin in the cryptocurrency bull market.'
Cardano Price Prediction - Are New Lows Coming?
Although Cardano may perform well in the upcoming cryptocurrency bull market, the bull market has not yet arrived.
Macro risks remain high - trade tensions may have peaked, but the upside risks of U.S. inflation and the downside risks of the U.S. economy remain significant.
Previously, altcoin booms occurred against a backdrop of significant easing by the Federal Reserve. However, this situation does not seem likely in the short term.
Therefore, traders are better off not excessively chasing Cardano's price increase in anticipation of the 'new altcoin season' arriving.
This situation will only occur when the Federal Reserve and other major global central banks inject liquidity and optimism about the long-term economic outlook is restored.
In such an environment, it is best to accept the market's volatility and directionless nature and trade based on what is seen on the charts.
So far this week, ADA's short-term technical outlook has deteriorated. This means ADA may test the recent low of $0.50 again.
Should you accumulate ADA during a downturn?
Although the short-term outlook is bearish and the medium-term outlook is uncertain, Cardano still presents an appealing long-term investment opportunity.
Although trailing competitors like Ethereum and Solana in terms of adoption, Cardano's strong fundamentals and strategic roadmap enable it to achieve significant growth, with its price potentially reaching $10 by the end of Trump's term in 2029.
Therefore, investors should view the current price fluctuations in the range as an accumulation opportunity.
The Cardano blockchain, with its Ouroboros proof-of-stake protocol, excels in scalability, sustainability, and security. Its focus on rigorous academic research ensures a solid foundation that sets it apart from numerous competitors.
A key bullish narrative is that Cardano's ambition is to become the premier Bitcoin DeFi chain, thus achieving seamless integration of Bitcoin's liquidity with decentralized financial applications.
Initiatives such as midnight agreements, enhanced privacy, and collaborations in emerging markets further strengthen its ecosystem.
Macro uncertainty may limit short-term gains, but Cardano's systematic development and growing use cases (covering DeFi, supply chain, and identity solutions) suggest significant upside potential.
This is especially true against the backdrop of a historic positive regulatory environment for the cryptocurrency industry, where the pro-cryptocurrency Trump administration made numerous efforts to support the industry.
However, due to Cardano's relatively low market capitalization compared to competitors, its return potential is not asymmetrical.
Strategic investors can leverage the current consolidation to build positions in the blockchain for exponential growth over the next four years.