Cardano (ADA) at Crossroads: $1.2 Billion Bitcoin Play Sparks Volatility as Key Support Holds

Cardano''s ADA token is dancing on a knife''s edge—while a $1.2 billion Bitcoin strategy reshuffles the deck, traders are watching support levels like hawks. Here''s the breakdown.

### The Bitcoin Domino Effect

When whales move $1.2B in BTC, altcoins tremble. ADA''s price action isn''t just technical—it''s a liquidity spillover game.

### Support or Surrender?

The charts whisper ''bullish divergence,'' but with Cardano''s track record, even the algo-traders are double-checking their scripts. (Funny how ''decentralized'' systems still hinge on a few critical price levels.)

### The Cynic''s Corner

Another day, another ''institutional strategy''—because nothing screams ''trustless finance'' like billion-dollar Bitcoin plays dictating altcoin prices. Stay sharp out there.

TLDR

• Cardano (ADA) price declined below $0.680 and is now consolidating near key support at $0.620
• Charles Hoskinson announced a $1.2 billion treasury strategy to convert ADA reserves into Bitcoin
• The plan involves using Bitcoin yield to buy back ADA tokens, creating a feedback loop to reduce supply
• At current prices, Cardano could acquire approximately 11,320 Bitcoin with its treasury reserves
• ADA faces technical resistance at $0.6720 with potential for further decline if $0.620 support breaks

Cardano price has entered a challenging phase, declining below the $0.680 zone in recent trading sessions. The cryptocurrency is now consolidating near critical support levels while facing pressure from both technical and market factors.

The token started a fresh decline below $0.70 and $0.680, breaking through several key levels. ADA is currently trading below $0.680 and the 100-hourly simple moving average, indicating bearish momentum in the short term.

Bears pushed the price below the $0.680 level, with a low forming at $0.6134. The price has since corrected some losses, moving above the $0.620 and $0.6350 levels. This recovery climbed above the 23.6% Fibonacci retracement level of the downward MOVE from the $0.7311 swing high to the $0.6134 low.

However, resistance has emerged NEAR $0.6560, limiting upward movement. A key bullish trend line is forming with support at $0.630 on the hourly chart of the ADA/USD pair.

On the upside, the price faces resistance near the $0.650 zone. The first resistance level sits near $0.6560, with the next key resistance at $0.6720. This level is close to the 50% Fibonacci retracement level of the recent downward move.

New Treasury Strategy Announced

Charles Hoskinson recently confirmed Cardano’s new treasury strategy in an interview. The plan involves converting part of the $1.2 billion treasury into Bitcoin and using the yield to buy back ADA tokens.

🚨Cardano is planning to buy bitcoin with its $1.2B treasury!

Hoskinson proposes converting some ADA in the #Cardano treasury into BTC and stablecoins——and use yield to buy back $ADA.💰

This could be crypto’s FIRST real sovereign wealth fund🔥 pic.twitter.com/cXJ0iaOURr

— Coin Bureau (@coinbureau) June 15, 2025

This strategy creates a feedback loop designed to reduce supply and support price appreciation. With its current treasury, Cardano could acquire approximately 11,320 Bitcoin at the current spot price of $106,000.

If Bitcoin reclaims the $110,000 level, that position WOULD generate unrealized gains of around $40 million. These gains could be redirected into ADA buybacks, potentially purchasing approximately 66.67 million ADA at a spot price of $0.60.

The strategy represents a shift from traditional DeFi staking rewards toward real yield generation. This approach could set a new standard for how Layer-1 blockchains manage long-term value.

Technical Analysis Points to Continued Pressure

Technical indicators suggest continued bearish momentum for ADA. The hourly MACD is gaining momentum in the bearish zone, while the RSI has dropped below the 50 level.

Major support levels are positioned at $0.630 and $0.620. If the price fails to climb above the $0.6720 resistance level, another decline could begin. Immediate support on the downside is near the $0.630 level.

A downside break below the $0.620 level could open the doors for a test of $0.60. The next major support sits near the $0.5650 level where bulls might emerge.

The ADA/BTC pair has retraced to pre-election lows, indicating weakening relative momentum. Futures order books reveal a lack of aggressive bids, keeping speculative liquidity thin and reducing short-term upside pressure.

Large holders are showing signs of retreat, with the $0.60 support zone appearing structurally fragile. ADA has posted two lower lows this month, increasing the probability of a deeper correction.

In the current volatile setup, even modest selling could spark broader panic among retail participants. Unless smart money begins accumulating ADA supply, the treasury strategy may face challenges in the short term.

The proposal marks a paradigm shift for Cardano’s approach to treasury management. The plan remains in development stages and has not yet been implemented.