In a significant development for the cryptocurrency space, Charles Hoskinson, the co-founder of Cardano, has joined a $200 million funding round for American Bitcoin, a firm focused on Bitcoin mining and artificial intelligence infrastructure, which is connected to the Trump family. This strategic move has drawn attention as Hoskinson outlined the potential for substantial revenue streams from the dual focus on mining and AI.
American Bitcoin, co-led by Eric Trump and Donald Trump Jr., had previously raised $220 million in a pre-IPO funding round earlier this year. The latest investment from Hoskinson, alongside notable figures such as Grant Cardone and Peter Diamandis, indicates a growing trend where capital is moving towards assets rather than being influenced by political affiliations.
Despite this positive news for American Bitcoin, Cardano (ADA) experienced a 2% decline, briefly dipping below the critical $0.50 support level before stabilizing slightly above it. The cryptocurrency’s downturn comes amid a broader reduction in demand, with trading volumes dropping by 41% to approximately $994 million, and open interest falling 3% to $635 million, indicating that traders are scaling back their positions due to market volatility.
Current data suggests that while ADA’s immediate price action has been negative, a portion of traders are positioning themselves to protect the key $0.50 support. The long-to-short ratio for ADA is at 1.08, indicating that long positions are being defended, which could be a sign of a price-floor formation.
Cardano’s current trading price of $0.5075 comes after a week-long decline, with the cryptocurrency sitting firmly below its critical moving averages of 50, 100, and 200 days. Signs point to persistent downward pressure as sellers maintain control. The Relative Strength Index (RSI) is hovering near oversold territory at 34.23, but without a bullish divergence forming, it hints that ADA may continue to drift sideways or dip further before any recovery can take place.
Immediate support for ADA lies at $0.50, with a deeper liquidity pool identified around $0.47. A close below $0.50 could lead to further retracement toward $0.45. Conversely, if ADA can hold its current level and climb back to $0.53, it might initiate a recovery towards $0.60, eyeing the 50-day average.
As the market navigates these developments, sentiment, macroeconomic factors, and trading flows are converging around the $0.50 support level. Traders appear committed to defending this psychological threshold, but the path to recovery remains uncertain without an increase in trading volume and a shift in market trends.
