Eric Trump confirmed a policy proposal from President Trump aimed at encouraging the growth of cryptocurrencies in the United States in a video shared on X. While this announcement has already stirred up the cryptocurrency community, Cardano price shows promise to hit previous cycle highs of $ 2.60.
According to Eric, President-elect Donald Trump plans to make American cryptocurrencies such as Algorand (ALGO), Cardano (ADA), Ripple (XRP), and Hedera Hashgraph (HBAR) entirely tax-free.
This move could position U.S.-based cryptocurrencies at an advantage, as it could exempt them from the burdens of tax obligations that their international counterparts would still endure.
Specifically, non-American cryptocurrencies could face a staggering 37% tax disadvantage, impacting their competitive standing on the global stage.
If enacted, this policy may spur increased investment in these specific cryptocurrencies. Moreover, it could drive broader innovation and investment in the blockchain-based sectors in the US.
Spike in Slippage Marks Cardano Price Local Bottom
Again, analysis of ADA’s price showed a sharp fluctuation that established a “local bottom” at $0.95 which could spark a rally towards $2.60 by early next year.
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The level was marked by a spike in slippage, which is commonly associated with intense trading activity. This potentially indicates market stress or rapid price shifts caused by substantial order sizes.
The Whale vs Retail Delta marked a shift preceded by the local bottom, suggesting a growing influence of whale transactions relative to retail trading.
This could imply that larger market participants were possibly increasing their positions at lower prices, which was an important signal for understanding potential reversals or continuations in market trends.
Furthermore, the high slippage levels coincided with sharp price movements, confirming high transaction volumes at critical price levels.
Such a scenario suggested that the market experienced heightened liquidity and order flow, often indicative of a possible trend reversal or key support level.
The indicators suggest that Cardano price could have reached a point that could attract further buying interest, potentially setting the stage for a market recovery or sustained bullish momentum.
ADA Trading Within a Support Zone
Moreover, Cardano’s price on the hourly timeframe, traded at $0.99, suggesting the possibility that ADA was within the fourth wave (4) of a larger Elliott Wave sequence.
The complex correction phase indicated by a series of Elliott Wave patterns could dictate the future price movement of ADA.
Price bounced near the $0.83 mark, within the Fibonacci retracement zone where a potential ABC correction pattern had formed.
Key Fibonacci levels were 23.60% at $1.067, 38.20% at $0.930, and 50.00% at $0.832, which gave price a reaction.
The recovery rally towards $0.99, just below the 38.20% retracement level, indicated a support zone that could catalyze a recovery.
This would happen if Cardano price maintained its current levels or found additional buying interest.
If ADA’s price extends its pattern to form a WXY correction, the recent low could represent a turning point, especially if the price stabilizes and moves away from the lower Fibonacci levels.
While the chart suggests a new low is possible, it is not guaranteed. ADA’s price action could remain corrective or transition into a more impulsive wave.
A failure to move above $1.067 could confirm the correction is ongoing, suggesting more sideways or downward movement before any significant bullish momentum resumes.
