Cardano (ADA) demonstrates early signs of potential recovery amidst the current bearish market sentiment. Recent movements and strategic plans for treasury diversification provide new insights.
Overview of Current Situation with ADA
Cardano (ADA) is showing early signs of potential rebound despite bearish sentiment. Its price climbed from $0.6291 to $0.6441, then corrected slightly to $0.6330, reflecting a 0.21% gain over 24 hours. By June 14, ADA declined to $0.6237, down 2.13% amid strong intraday selling. The token has exhibited consistently lower highs and lower lows, indicating bearish control. Multiple dips have tested the $0.615 support level, which has held firm.
Short-Term Prospects for Cardano
Cardano continues to face downward pressure. After reaching a local high of $0.6366, the asset began a steady slide, struggling to maintain above the $0.630 level. Short-term resistance now lies in the $0.636–$0.640 range. Without a break above this zone, ADA may remain under selling pressure. The support continues to hold around $0.615, which has been tested multiple times. Market sentiment remains cautious, with traders awaiting a decisive reversal signal. Analysts note that ADA's price is in a consolidation range with no clear bullish or bearish breakout.
Treasury Diversification Plan of Cardano
Cardano co-founder Charles Hoskinson announced a proposal to convert $100 million worth of ADA into Bitcoin and stablecoins. He outlined the plan during a YouTube livestream on June 12, describing it as a strategic effort to diversify Cardano's treasury and enhance DeFi liquidity. Currently, Cardano holds $31 million in stablecoins, while its total value locked (TVL) stands at $356 million, placing its stablecoin-to-TVL ratio below 10%. Hoskinson aims to raise this ratio to between 33% and 40% to improve capital efficiency. The proposed transition would take place over 30-90 days, utilizing methods to minimize market disruption.
If approved, Hoskinson's proposal could represent a significant shift in Cardano's strategic positioning within the DeFi space, emphasizing asset diversification and liquidity stability.
