Cardano (ADA) finds itself in a turbulent period as internal issues amplify the broader market downturn. The cryptocurrency’s price continues to decline, driven by various factors that are causing concern within the community.
Community Outrage Over Leaked Proposal
A leaked proposal from venture capital firm 3UTxO has sparked outrage in the Cardano community. The proposal requests 200 million ADA, valued at $74.3 million, which many fear could deplete the project’s treasury. This leak comes at a sensitive time, as the much-anticipated Chang hard fork faces delays, raising additional concerns among investors.
Hoskinson Attempts to Ease Concerns, Eyes Algorand Partnership
Cardano founder Charles Hoskinson has addressed these concerns, attempting to calm the community’s nerves. He emphasized that the Chang hard fork was delayed to ensure a smooth rollout, not due to fundamental issues. Furthermore, Hoskinson surprised many by expressing interest in a potential partnership with Algorand. He praised Algorand’s technology, highlighting its potential for decentralized AI projects, which could benefit the Cardano ecosystem.
Short Sellers Circle as ADA Tests Key Support Levels
Meanwhile, short sellers are increasing pressure on ADA, signaling growing bearish sentiment. The cryptocurrency is hovering near critical support levels between $0.355 and $0.367. If these levels fail, investors could face over $2.3 billion in losses. The current price of ADA sits at $0.379, reflecting a 4.5% drop in the last 24 hours. This decline, amid increased selling pressure, threatens to push prices even lower.
Development Activity Surges, but Price Struggles Persist
Despite Cardano’s strong development activity on Github, which surpasses even Ethereum’s, ADA’s price remains under significant pressure. The ongoing development efforts have yet to translate into positive price action, leaving investors frustrated.
Uncertain Future: Price Reversal or Further Correction?
Technical analysis suggests a possible price reversal if ADA breaks above a key resistance line. However, the overall market trend and rising transaction fees complicate this outlook. While reaching $1 by the end of Q3 appears unlikely, a longer-term recovery might still be possible. For now, Cardano faces an uncertain future as it navigates these challenges.
Read Also: Is Cardano (ADA) Back? A 19% Surge Sparks Bullish Hopes!
