- Cardano Cofounder Charles Hoskinson defended ADA against its “dead” tag.
Despite the support, ADA continued to decline and bearish market sentiments persisted.
As an experienced analyst, I believe that while Charles Hoskinson’s defense of ADA against the “dead” tag from Ben Armstrong is understandable and passionate, the price charts present a clear bearish trend for Cardano (ADA). The MACD line crossing below the signal line, the negative directional movement index, oversold RSI, negative Ol-Weighted Funding Rate, and declining Open Interest per Exchange all point towards sustained selling pressure on ADA.
Charles Hoskinson, one of the co-founders of Cardano [ADA], has been involved in a contentious debate with cryptocurrency analysts lately. The disagreement began when analyst Ben Armstrong declared that Cardano was no longer active or relevant.
In his recent YouTube video, the speaker expressed his belief that ADA had met its end, urging caution among investors who might be negatively impacted by this development. The situation is distinct from past instances, and therefore, vigilance is advised.
He carried on with this conversation on his X platform (previously known as Twitter), resulting in pushback from various analysts and ADA owners.
Armstrong opined,
Lately, I’ve expressed the view that institutions have written off both $DOT and $ADA as invalid investments. Consequently, their demise as legitimate financial assets may follow. However, it’s important to note that this does not imply they won’t generate impressive returns or experience price surges during this bull market. Instead, the potential gains could be more moderate in comparison.
As an analyst, I’ve noticed that my assessment of ADA‘s future has generated significant buzz, with some individuals expressing opposing viewpoints and others offering criticisms of my analysis.
While responding to Ben, Dave, another crypto analyst, stated that,
As an analyst, I would respond by saying: “Your perspective on the matter is subjective and I’m finding it hard to give it much weight without any supporting data or technical facts. It seems rather unlikely to me that institutions would disregard over six years of uninterrupted operation.”
Among the critics of these comments, noteworthy is Charles Hoskinson, the co-founder of Cardano.
As a cryptocurrency analyst, I’d like to point out that, according to Hoskinson’s statement on his official page, he identified some issues with Armstrong’s stance and considered it inconsistent with the fundamental principles of crypto.
As a cryptocurrency analyst, I recall a time when the primary objective of digital currencies was to displace traditional financial institutions, much like in the movie Deliverance where one learns to play the banjo to please a companion. However, the landscape has since evolved, and while disintermediation remains an essential aspect, the focus has broadened to include other use cases and applications.
In the end, a majority of investors and ADA owners believed that cryptocurrencies weren’t developed with the intention of relying on institutional investment. Instead, crypto aspires to democratize financial systems and remains under the control of the people.
What price charts indicate
But what do price charts show regarding ADA’s current trend?
As a researcher studying cryptocurrency trends, I observed that Cardano’s (ADA) price action exhibited a robust downward trajectory based on AMBCrypto’s analysis. Moreover, an essential technical indicator, the Moving Average Convergence Divergence (MACD) line, crossed beneath the signal line, providing compelling evidence of this bearish trend.
As a crypto investor, I’ve been keeping an eye on the Directional Movement Index (DMI) to gauge trends in the market. Recently, the index signaled a prolonged downtrend for me since the positive average directional index (ADI+) of 14 was under the negative average directional index (ADI-) at 27.
Additionally, the Relative Strength Index (RSI) for ADA was at 29, falling beneath the threshold of 30, signifying that the asset had undergone significant sell-off activity.
Even though an altcoin may have been oversold before a trend reversal occurs, it’s possible that the coin could stay in the oversold territory for an extended period.
Based on data from Coinglass, the Old-Weighted Funding Rate for Cardano (ADA) stood at a level of -0.0085%. This figure signifies that there was a bearish outlook among investors, as they were prepared to sell short the altcoin in expectation of its value continuing to decrease.
After a drop of $9 million within the past 24 hours, ADA‘s Open Interest on exchanges now stands at $55 million. This decrease suggests waning investor interest and doubt, as evidenced by their reduced commitment to ADA.
Can Cardano recover?
At present, ADA is priced at $0.3266 following a 17.23% decrease over the past 24 hours. Additionally, there has been a 15.33% downward trend for ADA over the last week.
Should the downward trend persist, Cardano (ADA) could reach a new low support point approximately at $0.29. However, given that oversold conditions often precede market rebounds, if there’s a reversal, ADA may bounce back to its earlier support level around $0.368.
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2024-07-05 20:08