Cardano (ADA) Holds Steady Amid 50% EU Tariff Threat, Eyes $1 Breakout

Cardano (ADA) has demonstrated resilience in the face of renewed trade pressures, particularly the announcement of a 50% tariff on the European Union by Donald Trump, effective June 1. Despite this looming threat, ADA's price has remained stable, indicating that the market has adjusted to such sentiments, with investors showing less volatility. Some experts suggest that ADA’s current consolidation pattern may lay a healthier foundation for a potential breakout toward the $1 range.

Cardano’s price has been in a lengthy consolidation phase within a falling channel, largely influenced by ongoing trade tensions. This trade climate pushed ADA price down to the $0.50 mark in April. However, a turning point came in mid-April when ADA began to recover, climbing to the upper boundary of the channel and reaching $0.85 in May. This rebound was fueled by a decrease in trade tensions, particularly after a significant deal was signed. However, recent tensions with the EU resurfacing has left many investors worried, but knowing the threat ADA price has not fallen beneath key EMA’s, and until it doesn’t break key supports the bullish views remain intact.

According to technical analysis from Dan Gambardello, the Cardano price action displays a markedly different pattern compared to its previous bull market cycle. Unlike the last cycle where ADA experienced a single dip after exiting the bear market before going parabolic, the current consolidation shows a more methodical approach with repeated pump and consolidate phases. This extended consolidation period is a “coiling” effect. He feels that Cardano price could smash $1, if it meets all bullish conditions. Gambardello notes that this coiling behavior is not limited to Cardano price. The extended sideways movement has allowed for healthier price support levels, in other altcoin’s too.

Additionally, Analyst Dan Gambardello uses Ethereum as a roadmap for altcoin performance. He noted that ETH is currently testing a multi-cycle trend line that has historical importance for the entire altcoin sector. An Ethereum breakout would cause an altcoin move. It would be a more favorable time for tokens like Cardano crypto that have consolidated and formed technical bases in this extended build-up phase.

In a recent report, it was revealed that Cardano’s performance during Q1 2025 was tough. It revealed that its quarter was filled with challenges. As its native token, ADA price, took a hit, which led to a decline in its circulating market cap. Despite these hurdles, Cardano still made significant strides in governance, like the activation of the Plomin Hard Fork was the biggest accomplishment. Interestingly, the report further highlighted that, while the ADA price volatility affected its most of the market sentiment, but the commitment to staking still remained remarkably stable. The stats showed that the total staked ADA saw only a slight decrease of 1%, settling at 21.6 billion ADA.

In contrast, some metrics performed exceptionally like the stablecoin market, it said that it expanded by 30% to reach a market cap of $30.1 million. This increased was largely driven by the popularity of fiat-backed options like USDM, IUSD, USDA, and others. Additionally, Cardano’s treasury balance showed resilience, increasing by 5% quarter-over-quarter to 1.7 billion ADA. However, the U.S. dollar value of the treasury took a hit, dropping 19% to approximately $1.1 billion. Overall, while Cardano faced financial challenges, its governance advancements and stable staking commitment highlight the community’s ongoing dedication to the platform’s future.