Cardano Price News: Can ADA Recover After Hoskinson’s Panel with Trump’s DeFi Project?

Charles Hoskinson will moderate a discussion titled “Digital Liberty: Expanding Global Access to Digital Assets and DeFi” where the three co-founders of WLFI will appear alongside President Trump’s oldest son – Donald Trump Jr. – who holds the title of Web3 Ambassador for the DeFi company and who will join the summit virtually.

Hoskinson’s ties to the Trump administration appear to be deepening. Earlier this month, President Trump surprisingly included Cardano (ADA) as one of the cryptocurrencies that could make it to his proposed U.S. crypto strategic reserve.

Although this never materialized, it evidenced that the head of state is aware of the project’s existence and prospects as it was included in the same group as Bitcoin (BTC) and Ethereum (ETH).

Cardano is One of the Most Overvalued Networks by This Metric

Cardano supporters believe that Hoskinson’s participation in this conversation could be a hint that WLFI is seriously considering including ADA in its portfolio of crypto assets.

At the time of writing, WLFI does not hold any ADA. Its largest positions are in Ethereum (ETH) in multiple forms, Wrapped Bitcoin (WBTC), Tether (USDT), and Tron (TRX). If WLFI starts to buy ADA, that could prompt a rally as it would be another significant pad in the back for the network.

However, ecosystem growth is one of the network’s weak spots as the Cardano blockchain has one of the lowest TVL/Market Value ratios in the crypto space at 1.5% while Solana, Ethereum, and even Sui boast a much higher ratio of 9.4%, 19%, and 14.5% respectively.

This makes Cardano possibly the most overvalued smart contracts platform in the industry as ecosystem growth fails to justify its high price tag at the moment.

Bearish Pennant Still in Play

We have been tracking the evolution of a bearish pennant scenario for Cardano (ADA) for a few days and it appears that the latest price action has already invalidated the setup.

However, the American session has started with a strong pullback during what would have been ADA’s fourth consecutive days of gain so the jury is still out.

If the price of ADA keeps collapsing during what remains of the session, this setup would be once again in play. A bearish breakout below the pennant’s lower bound at around $0.680 could possibly lead to a resumption of the token’s latest downtrend.

This break would imply a 16% downside risk for ADA in the near term. Market sentiment remains heavily depressed and would easily support such a move. However, the latest uptrend has been strong and momentum indicators are still favoring a bullish outlook.

The $0.680 level would need to hold for bulls to remain in control of the price action over the next few days.

Shorting Seems Rewarding

Moving to the hourly chart, today’s drop has been significant and the price is already nearing a key support at $0.739. If this support line is broken, a short position would offer significant upside potential as it would confirm a trend reversal.

Momentum indicators are confirming this bearish outlook as the Relative Strength Index (RSI) crossed below the signal line and made a lower low. Meanwhile, the MACD’s histogram just posted its first negative reading.

If ADA drops below this key support, a first exit target could be set at $0.702, which results in an attractive risk-reward ratio of 2.6 if the stop price is set 1% above this support/resistance line.