Will Cardano Price Rally as Hoskinson Confirms Revised CLARITY Act Recognizes ADA’s Non-Security Status?

Cardano (ADA) has increased by 11% since May 2026 started. These gains have come from two things happening with the CLARITY Act for the last two weeks: a compromise on stablecoin yield and a new draft bill. Cardano founder Charles Hoskinson has now changed tune towards CLARITY because of these two things, and he has confirmed ADA cannot be termed a security. But will Hoskinson’s change of mind amid these changes help Cardano price go up?

Hoskinson Softens Stance Towards CLARITY Act

Hoskinson has endorsed the CLARITY Act in a recent X post, where he said that Senator Tim Scott has provided “good leadership” in revising the bill. He confirmed that because of these revisions, ADA cannot be called a security.

The founder is saying this because the revised version favors tokens that have decentralized governance, which Cardano has.

In the past, Hoskinson has warned that the CLARITY Act has no benefit to crypto, saying it even made some tokens securities. But he has now softened his stance, even if there are hundreds of amendments and opposition from Senator Warren and others.

But Hoskinson’s view might just change again because banks have bombarded the Senate with 8,000 letters that want a revision on stablecoin yield.

There are also worries that the CLARITY Act might not pass because of all the back and forth between banks, crypto firms, and the Senate. The chance that CLARITY is going to pass has dropped from 74% to 60% on Polymarket.

Cardano Price Bounces From Demand Zone as Bulls Eye $0.34

The candle that Cardano price made last week was the biggest one it has ever made since the week of March 9 to 15. The price went from $0.248 to $0.288 in just seven days. But the price it reached is now an obstacle.

ADA was able to make this big weekly candle because of a lot of buying at the demand zone between $0.24 and $0.25. But now, this is not happening anymore because those buying stepped aside when the price reached resistance at $0.28.

If Cardano can go above $0.28, it will reach $0.34. This is the long-term Cardano price forecast because the rounding bottom has a depth of 21%.

The AO reading of green but below zero is showing bears might lose their grip. This reading shows bearish momentum is becoming weak, and this gives way for Cardano price to get to $0.34.

ADA’s Derivatives Activity Heats Up

When Cardano price bounced from the demand zone and showed that bears are becoming weak, those trading derivatives seem to have hopped on the bullish train to $0.34. The OI that was at only $69 million in February has soared to $122 million per Coinglass.

The long/short ratio reading for Cardano on Binance is 2.30. The reading is that there are more than two times more long buyers than short sellers for ADA on Binance, and this shows a bullish skew.

But this ratio of 2.30 might also bad for Cardano price because it might cause a lot of selling if the price does not rise the way long buyers are expecting it to.