cardano

Cardano (ADA): Patience Before the Next Move
ADA is at a point where market structure matters more than predictions. Sellers still have the advantage, but a confirmed breakout could change the short-term picture.
Rather than guessing the next direction, I’m watching how price reacts around key support and resistance zones. A daily close can reveal more than a temporary move during the session.
In crypto, a good decision starts with evidence, not emotion.
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Cardano’s real-world asset (RWA) ambitions face a governance test as constitutional objections challenge a proposal to invest over 20 million ADA tokens in physical copper.
Dubbed the #Cardano Strategic Copper Reserve, the proposal was submitted by Toto Finance and seeks to purchase copper cathodes and represent the physical metal on-chain through CuTT tokens.
How Toto Finance Plans to Build a Copper Reserve
Submitted on October 15, Toto Finance Inc.’s proposal requests a one-time withdrawal of 22 million ADA tokens from Cardano’s treasury, with the company acting as the accountable administrator.
Approximately two-thirds of the requested capital will be allocated toward acquiring high-grade copper, which will be kept in an authorized domestic warehouse. Every validated pound of this copper backing will represent one CuTT token.
Under the plan, Toto Finance would hold the copper for up to two years before conducting a controlled sale. The company would then return the net proceeds and any unused funds to the treasury within 36 months.
However, the proposal does not guarantee the recovery of the original ADA or any profit. It estimates a break-even copper price of $10.06 per pound if all stated fee ceilings apply, compared with an illustrative entry price of $6.73.
Constitutional Committee Flags Two Compliance Issues
Despite the proposal’s investment objectives, two Constitutional Committee members voted against it on October 22 and October 23, respectively. They cited two constitutional concerns.
First, the proposal’s documentation is hosted on the proposer’s website. The committee members argue that Cardano’s Constitution requires governance documents to remain immutable after submission. Although a cryptographic hash can detect changes, it cannot prevent the website operator from replacing the published document.
Second, the receiving account delegates to the “abstain” option while also delegating to a stake pool. The members consider this arrangement unconstitutional.
Additionally, one member questioned Toto Finance’s position as the sole administrator, noting that independent checks on how the company uses the funds have yet to be appointed.
The proposal needs at least two-thirds of the Constitutional Committee to find it constitutional. At the time of writing, five members had yet to vote.
DRep Voting Signals Early Resistance
Meanwhile, voting among delegated representatives (DReps) also shows limited support for the proposal.
According to the latest figures, 32.8% of DRep votes oppose the action, while only 0.32% support it. The remaining 66.87% have yet to vote.
Nevertheless, voting remains open, meaning the figures could change before the November 15, 2026, deadline.
Unfinished Arrangements Add to Implementation Risks
Beyond the constitutional objections, several aspects of the proposed investment remain conditional.
For instance, a U.S. PwC member firm is the preferred independent oversight provider, but Toto Finance has not yet engaged it. Similarly, the Cardano Foundation’s Reeve reporting layer remains a proposal, while audit mandates and security reviews for the Ethereum-to-Cardano bridge remain outstanding implementation milestones.
Under the proposed structure, the treasury-funded CuTT tranche would be locked in Ethereum escrow, with corresponding bridged tokens issued on Cardano.
Consequently, the arrangement introduces additional requirements for verifying the physical copper, securing the underlying assets, and ensuring that the on-chain tokens accurately represent the metal held in custody.
Although the proposal permits submission before the relevant contracts are finalized, it requires disclosure of their status.
Toto Finance’s CEO is scheduled to discuss the proposal with the Cardano Foundation’s governance lead during “Cardano Governance Hour #12” on October 28. Meanwhile, the governance action remains open for voting until November 15, 2026.
Cardano’s RWA Support
Notably, the proposal tests whether Cardano can pursue its RWA ambitions without compromising its constitutional safeguards. The current voting figures indicate resistance, while the outstanding compliance and implementation issues add further uncertainty.
Nevertheless, Cardano founder Charles Hoskinson has strongly advocated RWA tokenization, describing it as a major driver of growth for the crypto sector over the next five years.
The Cardano Foundation has also participated in RWA initiatives involving the London Stock Exchange Group (LSEG), MembersCap, and Archax. However, the broader push toward tokenization does not resolve the specific constitutional and operational questions facing the copper reserve proposal.
#CryptonewswithJack

Market commentator Kevin Mercer has warned that #Cardano holders could face another round of sharp price swings in the coming months.
Mercer described Cardano’s price behavior as a cycle of ‘pumping hard, dumping harder,’ and then moving on as if nothing happened. His commentary highlights the volatility that has characterized Cardano’s recent price movements.
Chart Projects Further Decline Toward $0.15
Mercer’s accompanying TradingView chart illustrates the projected zigzag pattern. It first highlights ADA’s recovery from the $0.14 level in late June to $0.28 in early October 2026.
However, ADA subsequently reversed direction and began a sharp pullback. At the time of the analysis, ADA traded around $0.217.
The red-shaded section projects further downside, with several short-lived rebounds followed by renewed declines. This pattern suggests that ADA could fall toward $0.15 in late 2026 or early 2027.
Potential Recovery Could Follow
Despite projecting further downside, Mercer’s chart also depicts a potential recovery after the anticipated correction. It extends into the first quarter of 2027 and suggests that ADA could regain ground toward $0.27.
Besides Mercer, other analysts are anticipating Cardano’s potential decline before a recovery. Over the weekend, popular stake pool operator Sssebi expressed a similar view.
Acknowledging the bearish sentiment surrounding Cardano, Sssebi suggested that ADA could experience a significant dip followed by a massive rebound this week.
In his view, the potential decline could give investors an opportunity to buy ADA at discounted prices ahead of a subsequent rally.
Other Bearish Projections For Cardano
Beyond predictions of a temporary decline followed by a rebound, bearish projections for Cardano have also gained traction recently.
Analyst V warned that ADA could revisit its June 2026 low and fall below $0.14 if it breaks beneath the ascending channel it has maintained since July.
Similarly, prominent analyst Ali Martinez projected a potential downside target of $0.166, reinforcing concerns about further weakness in ADA’s price.
Nonetheless, these projections represent possible scenarios rather than confirmed outcomes. Neither Mercer’s chart nor the other analysts’ forecasts establish that ADA will reach the projected lows or subsequently recover to their anticipated targets.
At press time, ADA had fallen below $0.21 to $0.2021, down 1.47% over the past 24 hours and 8.34% over the past week.
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