Cardano, 'Non-Security' Remark Fuels Soaring Expectations..."$0.34 Opens Up"

▲ Cardano (ADA)/AI generated image

Cardano (ADA) has risen 11% since May 2026, with the revised US crypto market structure bill and movements in the derivatives market emerging as key variables for potential further gains. Coingape reported on the 13th that Cardano founder Charles Hoskinson confirmed the revised US crypto market structure bill would not classify Cardano as a security.

In a recent X post, Hoskinson praised Senator Tim Scott for showing "good leadership" during the bill's amendment process. He confirmed that due to these revisions, Cardano cannot be called a security. Coingape explained that the amendment is favorable to tokens with decentralized governance, a condition that Cardano meets.

Hoskinson had previously warned that the US crypto market structure bill was not beneficial to the crypto industry and could classify some tokens as securities. However, his stance softened with compromises surrounding stablecoin yields and the release of a new draft. Nevertheless, with banks having sent 8,000 letters to the Senate demanding adjustments to stablecoin yields, the article also noted that Hoskinson's views might change again.

Uncertainty remains regarding the bill's passage. As discussions continue among banks, crypto companies, and the Senate, the probability of the US crypto market structure bill passing this year, according to Polymarket, has dropped from 74% to 60%.

In terms of price trends, breaking above $0.28 was presented as a key short-term factor. Cardano rose from $0.248 to $0.288 last week, creating its largest weekly candle since the week of March 9-15. This increase was attributed to strong buying pressure in the demand zone between $0.24 and $0.25.

However, $0.28 is currently acting as an obstacle. Buying pressure retreated after the price reached the $0.28 resistance line, and analysis suggests that only a move above $0.28 will open up the possibility of a rise towards $0.34. Coingape cited a 21% depth in the rounding bottom pattern as a basis for setting $0.34 as a long-term price target for Cardano.

In technical indicators, the Awesome Oscillator showed green but remained below the 0 line. Coingape analyzed that this figure indicates weakening bearish momentum, creating room for Cardano's price to move towards $0.34.

The derivatives market is also showing signs of overheating. According to Coinglass, Cardano's open interest surged from $69 million in February to $122 million. On Binance, the Cardano long/short ratio recorded 2.30. This was interpreted to mean that long buyers betting on Cardano's rise on Binance outnumbered short sellers by more than two to one.

However, a long/short ratio of 2.30 was also presented as a factor that could increase selling pressure if the price does not rise as expected by long position investors. Cardano's sustainability of the $0.34 upward scenario will be tested by its ability to reclaim the $0.28 resistance and the resolution of uncertainties surrounding the US crypto market structure bill.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*