The Cardano (ADA) price is set for major volatility as the outcome of US election day looms, and the discussion surrounding the Cardano Foundation’s budget proposal heats up.
ADA was last changing hands around $0.337. It kicked well within recent ranges but is still below its 50DMA, which has acted as strong resistance in recent months.
The outcome of the election will determine the near-term direction of the Cardano price, with crypto bulls hoping for a Trump victory.
Trump is widely viewed as the more pro-crypto candidate, and his victory, plus a Republican sweep in Congress, would be expected to herald a new era of pro-crypto policy in the US.
Beaten-down altcoins like Cardano, which the SEC labeled as a security back in 2023 and remains down more than 90% from its record highs, could be some of the best performers in the short term.
However, angst is growing amongst members of the Cardano community that the Cardano Foundation’s budget proposal for 2025 could hurt the price.
X user Nicolas Cerny summarized the latest Cardano Foundation budget proposal in the tweet thread below.
However, the most important takeaway is the first line – the budget could require between 300 and 500 million ADA sales.
X user GAIA Stake Pool argues that even if not all are sold simultaneously, 500 million in ADA sales would have negative price implications.
“This would harm all ADA holders and builders financially,” they added.
Where Next for the Cardano Price?
Cardano has been a big underperformer in the last two years. Indeed, the Cardano price never escaped the 2022 bear market and remains only around 55% above its June 2023 lows.
Meanwhile, its major rivals, Solana (SOL) and Ethereum (ETH), are up over 1,900% and 180%, respectively, from their 2022 lows.
That reflects a weak adoption narrative, with Cardano’s trade value locked (TVL – the $ value of crypto locked in Cardano smart contracts) remaining tiny compared to most of its major rivals.
However, if a new bull market comes, Cardano could be set for catch-up growth in 2025. One way to kill that would be with a massive Cardano Foundation sale of 500 million ADA.
ADA traders will need to monitor this theme carefully. But assuming Trump wins today’s US election (he is currently favored by around 60% in the betting markets), the door could open for a quick return to yearly highs in the $0.80 area.
So, while the longer-term outlook for the Cardano price is unclear, it could be one of the best cryptos to buy now for quick gains.
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The post Cardano Price Set for Major Volatility as Foundation Plans 500M ADA Sell – What’s Going On? appeared first on Cryptonews.
