Cardano (CRYPTO: ADA) slipped toward key support on Wednesday after Charles Hoskinson said the Trump-era crypto boom became a "rib-crushing hug" that threw the market's normal cycle off balance.
Hoskinson Says Government Support Backfired
Hoskinson said during an interview that the industry, including himself, entered 2025 expecting Trump's pro-cryptocurrency stance to be a major tailwind.
He said the opposite happened, arguing that rapid political enthusiasm created an irrational rush of capital and disrupted the ecosystem's typical four-year rhythm.
The Cardano co-founder described the U.S. government's involvement as a "rib-crushing hug," saying large-scale support introduced instability rather than clarity.
He added that the sudden embrace accelerated speculation and made the market more fragile.
Hoskinson said the industry is still working through the effects as policymakers, investors, and developers navigate an environment that moved too far, too fast.
ADA Slides Toward Key Support
Cardano Price Analysis (Source: TradingView)
Cardano trades just above the dense demand zone between $0.45 and $0.43, a level that has historically acted as an accumulation region.
The price sits below every major EMA cluster, stacked between $0.53 and $0.71.
Each recovery attempt has been rejected at the short-term EMAs, confirming a sustained loss of trend strength.
A thick high-volume node near $0.50 failed to stabilize price.
ADA moved through the level with little resistance, suggesting strong selling interest.
The next meaningful liquidity pocket coincides with the blue demand band near the low $0.45 region.
Former support zones at $0.6174 and $0.7170 have turned into resistance.
A daily close below $0.4528 would expose the deeper demand shelf around $0.40.
What Buyers Need To Reverse Momentum
If buyers defend $0.45, ADA must reclaim the 20-day EMA first.
A break above the descending trendline would then be required to neutralize the prevailing downtrend.
Only a sustained move above $0.62 would shift momentum toward recovery and open the path back to $0.71.
Until those levels are reclaimed, ADA trades in a downtrend defined by weakening participation and declining momentum.
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