ADA Coin Forecast: Trend Signals Deepening Weakness

Technical Analysis

• ADA is still trading below its resistance band, with the trend remaining bearish until price action breaks above this critical level. Currently trading near $0.5168 (down 2.45%), the coin sits compressed beneath a broad resistance zone on the daily chart, signaling weakening momentum. Until ADA reclaims this band decisively, downward pressure is expected to persist.

• The crypto sector is facing proposed tax amendments that industry representatives warn could trigger immediate consequences: company bankruptcies, reduced investment, and talent migration to friendlier jurisdictions. For ADA, already struggling below technical resistance, these policy uncertainties could intensify bearish sentiment and delay any potential recovery.

• The proposed tax framework could significantly impact government revenue if it undermines sector growth. Lower trading volumes, shrinking corporate profits, and reduced blockchain development would directly affect tax collection. Industry players are advocating for an alternative approach—modest profit tax increases instead of complex labor-based measures—arguing this would preserve revenue without destabilizing operations.

• Beyond headline changes, the proposals include revisions to depreciation rules, reporting standards, and digital asset classification. These adjustments could lead to declining tax contributions as companies scale back, freeze hiring, or relocate abroad. Combined with ADA’s technical weakness, this regulatory uncertainty creates a challenging environment for near-term price action.

• ADA’s trajectory depends on two factors: whether it can reclaim the resistance band on the chart, and whether regulatory pressures stabilize or intensify. Until both conditions improve, the coin faces continued downward risk.

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Source: Trend Rider