Cardano, will May ultimately end in a 'decline'?...Emergency as $0.25 collapses

▲ Cardano (ADA)/ChatGPT generated image

As Cardano (ADA) faces pressure below the key support level of $0.25, Charles Hoskinson's 'science coin' warning has further dampened investor sentiment. Technical indicators also simultaneously show signs of a short-term rebound and bearish pressure, increasing caution regarding price movements at the end of May.

CoinGape reported on May 21 (local time) that Cardano's price remained below the $0.25 support line and fell by 0.60% over the past 24 hours. Although trading volume on major exchanges increased significantly, the price failed to gain recovery momentum. Bitcoin (BTC) remaining below $77,000 and Ethereum (ETH) trading near $2,111 also contributed to the overall burden on the cryptocurrency market.

Within Cardano, a debate surrounding the execution of community treasury funds has emerged. The controversy began with a research proposal from Input Output Global (IOG). It is reported that some Japanese representatives opposed the proposal during governance discussions, intensifying tensions over Cardano's long-term technological growth direction and priorities.

Hoskinson stated in a live stream held in the UK on May 21 that this year's treasury season is more difficult than past funding seasons. According to Hoskinson, the Cardano ecosystem requested approximately $52 million in funding this year. Last year's treasury discussion volume was reportedly about $98 million before recent spending cuts.

Hoskinson explained that his department had already been hit by past budget cuts, and some teams are involved in work for the community. He said that many veteran contributors had to make difficult financial decisions, and as a result, several personnel have already left the ecosystem. Hoskinson strongly defended Cardano's research-based structure, emphasizing that scientific progress remains the most crucial factor for Cardano to make its mark in the cryptocurrency market.

Hoskinson cited Cardano's accumulated work in proof-of-stake systems, scalable Unspent Transaction Output (UTXO) technology, Plutus, sidechains, and Bitcoin-based decentralized finance research. The conflict over research funding has thus escalated beyond a simple budget dispute to an issue of Cardano's identity and technological direction.

Price movements are unstable. Cardano showed signs of recovery after receiving a new bullish trend signal from the TD Sequential indicator. Crypto analyst Ali Charts reported that the indicator sent a sell signal on May 10, accurately predicting the 15% price correction that followed over the next 10 days. The same indicator this time sent a buy signal, suggesting the possibility of a short-term reversal.

However, for buying pressure to lead to an actual recovery, Cardano must maintain the key support level of $0.246. If buying momentum strengthens, it might attempt to recover $0.255, but the market has still failed to break through the $0.250 resistance. On May 21, Cardano's price continued to face pressure around $0.247.

Bearish signals also remain on the 4-hour chart. The Moving Average Convergence Divergence (MACD) indicator stayed below the signal line, indicating a bearish market sentiment. The Relative Strength Index (RSI) remained in the 40 range, showing weak buying pressure. Intraday, it struggled to stably hold above the $0.245 support line.

If selling pressure continues, Cardano's price may retest the $0.245 support in the next trading session. If it falls below this level, the next price targets are suggested to be around $0.240 and $0.235. Conversely, if the recovery strengthens, the immediate resistance is $0.250, followed by $0.255 and $0.260 as the next resistance targets. With the confluence of research funding conflicts, weak technical trends, and deteriorating overall market sentiment, whether Cardano can defend its key support levels by the end of May has emerged as a critical variable for price movements.

*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.*