Cardano, 'Non-Security' Remark Ignites Expectations..."$0.34 Opens Up"

▲ Cardano (ADA)/AI generated image

Cardano (ADA) rose 11% in May 2026, with the revised U.S. cryptocurrency market structure bill and derivatives market movements emerging as key variables for further upside potential. CoinGape reported on the 13th that Cardano founder Charles Hoskinson stated that the revised U.S. cryptocurrency market structure bill confirms that Cardano cannot be considered a security.

Hoskinson recently stated in an X post that Senator Tim Scott showed “good leadership” during the bill's amendment process. He confirmed that due to these revisions, Cardano cannot be called a security. CoinGape explained that the amendment is favorable to tokens with decentralized governance, and Cardano meets this condition.

Hoskinson had previously warned that the U.S. cryptocurrency market structure bill was not beneficial to the crypto industry and could classify some tokens as securities. However, his stance softened with compromises surrounding stablecoin yields and the emergence of a new draft. Nevertheless, the article noted that Hoskinson's view could change again, given that banks have sent 8,000 letters to the Senate demanding adjustments to stablecoin yields.

Despite the possibility of the bill passing, uncertainty remains. As discussions between banks, crypto companies, and the Senate continue, the likelihood of the U.S. cryptocurrency market structure bill passing this year, according to Polymarket, has dropped from 74% to 60%.

In terms of price movement, breaking above $0.28 was presented as the short-term key. Cardano rose from $0.248 to $0.288 last week, forming its largest weekly candle since the week of March 9-15. This surge was attributed to strong buying pressure in the demand zone between $0.24 and $0.25.

However, $0.28 is currently acting as an obstacle. Buying pressure receded after the price reached the $0.28 resistance, and analysis suggests that only if Cardano moves above $0.28 will the possibility of an ascent towards $0.34 open up. CoinGape set $0.34 as a long-term price target for Cardano, based on a rounding bottom pattern depth of 21%.

In technical indicators, the Awesome Oscillator showed green but remained below the zero line. CoinGape analyzed that this figure indicates weakening bearish momentum, creating room for Cardano's price to move towards $0.34.

The derivatives market is also showing signs of overheating. According to Coinglass, Cardano's open interest surged from $69 million in February to $122 million. On Binance, the Cardano long/short ratio recorded 2.30. This was interpreted to mean that long buyers betting on Cardano's rise on Binance outnumbered short sellers by more than twofold.

However, a long/short ratio of 2.30 was also presented as a factor that could increase selling pressure if the price does not rise as expected by long-position investors. Cardano's $0.34 upside scenario will be tested depending on its recovery of the $0.28 resistance level and the resolution of uncertainties surrounding the U.S. cryptocurrency market structure bill.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*