Why is the Cardano (ADA) Price Down Today?

Why is the Cardano (ADA) Price Down Today?

TL;DR: Cardano (ADA) fell to $0.82 following a Trump executive order, possibly due to a "sell the news" reaction. Charles Hoskinson's exclusion from a White House crypto summit raises concerns about future regulatory influence.

ADA's Price Dip

Cardano's ADA token experienced a significant price surge on March 3rd, reaching over $1.10 (a 60% daily increase) following Donald Trump's announcement of a strategic crypto reserve potentially including ADA. However, after President Trump signed the executive order focusing solely on Bitcoin, ADA's price plummeted. As some predicted, a "sell the news" event occurred, pushing ADA as low as $0.82 before recovering slightly to $0.88 (according to CoinGecko), representing a 24-hour decline of approximately 6%. Despite this drop, ADA maintains its position as the eighth-largest cryptocurrency by market capitalization (approximately $31 billion), surpassing Dogecoin.

Further Price Pressure: The White House Crypto Summit

Another contributing factor to ADA's price decline may be the White House crypto summit on March 7th. While several prominent figures from the crypto industry, including Brad Garlinghouse (Ripple), Brian Armstrong (Coinbase), and Michael Saylor (MicroStrategy), are attending, Cardano founder Charles Hoskinson was notably absent. This is significant, as Hoskinson previously expressed his intention to collaborate with the Trump administration on cryptocurrency regulation. His exclusion could potentially hinder these efforts.

Potential for Future Growth

Despite the recent price drop, several bullish factors could drive ADA's price upward in the future. These include:

• Potential Gemini Listing: Tyler Winklevoss (Gemini co-founder) hinted at a potential listing of ADA on the Gemini exchange, which would significantly increase liquidity and accessibility.
• Potential ADA ETF: Grayscale's application to the SEC for a spot ADA ETF is pending. Approval would provide investors with easier exposure to ADA, potentially boosting demand. Polymarket estimates a 70% chance of approval before the end of 2025.

This article originally appeared on CryptoPotato.