Cardano Price Analysis: Will Elon Musk Put US Treasury on ADA Blockchain?

Cardano (ADA) price remains in bearish this week as many crypto investors have embraced a cautious tone. Bitcoin (BTC) crashed below the support at $100k and the falling fear and greed index has not helped. However, ADA price may rebound if Elon Musk agrees to use Cardano network to digitize the US Treasury and other parts of the government. 

Cardano Price On Edge As Pressure on Elon Musk to Put US Treasury on ADA Intensifies

Cardano’s fans are pressing Elon Musk to select the blockchain for decentralizing the US Treasury and other parts of the government. These users are reacting to a media report that suggested that Musk was considering embracing blockchain technology to track and cut government spending.

Charles Hoskinson, the founder of Cardano, has made that appeal on X, Musk’s social media network. Most social media appeals from fans have cited Cardano’s benefits compared to other blockchain networks like Solana and Ethereum. 

In an X post, TapTools highlighted key benefits like its scalability, energy efficiency, security, decentralization, smart contract automation, and transparency. The post said:

“Cardano is one of the most decentralized networks in crypto, is fully decentralized, and has unmatched security.”

Another user added more benefits for selecting Cardano, including its 100% uptime for the last seven years and the fact that it is the first peer-reviewed network.

Cardano price would jump if it were selected to be the chain for improving government efficiency because it would be an endorsement by the US government. However, it is unclear whether he will select Cardano for the role.

Elon Musk’s Department of Government Efficiency is working to save the government $2 trillion.

ADA Price Technical Analysis

The weekly chart shows that the value of ADA has pulled back in the past two months, moving from a high of $1.32 to $0.53 this week. Cardano has remained above the 100-day moving average of $0.575, a positive sign.

It is forming a hammer candlestick pattern. This pattern is characterized by a small head and a longer shadow and is a popular bullish reversal sign. 

Further, there are signs that the coin is in the second phase of the Elliot Wave pattern. This phase is usually followed by the third one, which is the longest. In this case, the third phase will likely run to the psychological level at $2, along the 61.8% Fibonacci Retracement point. This Cardano price target is about 177% above the current level. It will also be confirmed if it rises above $1.329.

The bullish ADA price forecast will become invalidated if it drops below the lower side of the hammer pattern at $0.514. A crash like that will see it drop to the 2023 low of $0.23.

Summary

Cardano fans have continued to pressure Elon Musk to use the network to digitize key parts of the US government. They argue that the chain is more cost-friendly, highly decentralized, and has a record of not having a downturn. It is unclear whether Musk will agree to that. But if he did that, there are chances that the Cardano price would skyrocket higher, potentially to the 61.8% retracememt point at $2.