Cardano Price Drops 7% After Bullish Spike Sparks Short-Lived Optimism

TLDR

• Cardano price declined by 7 percent shortly after Charles Hoskinson addressed the Clarity Act.
• Despite a strong wave of bullish sentiment, ADA failed to gain upward momentum and dropped to $0.3662.
• Hoskinson criticized Ripple CEO Brad Garlinghouse for supporting the bill despite its potential risks to DeFi.
• Market intelligence platform Santiment reported bullish sentiment was 27 times higher than bearish views.
• Hoskinson’s remarks sparked temporary optimism but selling pressure quickly emerged in the broader crypto market.

Cardano’s price dropped 7% despite a surge in bullish sentiment after comments by founder Charles Hoskinson. Following his criticism of the Digital Asset Market Clarity Act, sentiment around ADA spiked, but the token’s price still fell. This reaction underscores the challenges ADA faces amid broader market conditions.

Surge in Bullish Sentiment Following Hoskinson’s Remarks

Cardano’s sentiment turned overwhelmingly bullish after Charles Hoskinson expressed concerns over the Digital Asset Market Clarity Act. His remarks included criticizing Ripple CEO Brad Garlinghouse for supporting the bill, which Hoskinson believes has major flaws. Among these are KYC requirements for every transaction and limitations on DeFi activities.

Despite his criticism, which stirred strong reactions within the community, the sentiment around ADA remained overwhelmingly positive. Santiment, a leading market intelligence platform, reported that bullish comments outnumbered bearish ones by a ratio of 27 to 1. “Hoskinson’s criticism was seen as a rallying cry for those who felt the bill posed significant risks to the industry,” Santiment said.

Cardano Price Struggles Amid Broader Market Conditions

Despite the surge in positive sentiment, Cardano’s price struggled to hold its ground. ADA’s price was trading at $0.39 when Hoskinson made his broadcast on January 18. However, the token’s price quickly dropped 7.69%, falling to $0.36 by the following morning.

The decline in Cardano’s price coincided with a broader market sell-off triggered by geopolitical tensions. Market observers noted that a U.S. vs China tariff dispute led to a broader downturn. Even after a brief recovery to $0.37, ADA’s price hovered around $0.3662 at press time.

The broader macroeconomic conditions appear to have contributed to the downward pressure on Cardano’s price. The market’s reaction to Hoskinson’s remarks was brief, and selling pressure soon outweighed the bullish sentiment. Santiment emphasized that this contrarian move is not uncommon in crypto markets, where prices often move against prevailing expectations.

Similar patterns have been seen in the past, such as the drop in ADA’s price despite optimism around the launch of Hydra v1.0.0 in October 2025. In that case, the broader market conditions, particularly the U.S. vs China tariff war, played a significant role in the downturn.

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