Cardano (ADA) has faced consistent bearish pressure since September began. However, the MACD and RSI have shown bullish signals. The MACD crossed over to the Signal line on September 9, while the RSI entered the bullish zone by September 10. Despite these positive indicators, ADA’s price hikes remained modest until Cardano founder Charles Hoskinson addressed rumors on X. This triggered a 4.75% surge in ADA’s trading price to $0.3549. As of the latest CoinMarketCap update, Cardano recorded a 10% weekly gain, outperforming Bitcoin (BTC) and Solana (SOL).
Rumors Surrounding Cardano
On September 11, a group of well-known crypto analysts discussed Cardano’s market standing during a podcast posted on X. They focused on why projects like Cardano and Ripple (XRP) maintain large market capitalizations despite recent lackluster price performance. An X user, Stake with Pride, replied that Cardano is the only top 20 coin with native liquid staking, and no staked ADA is ever locked. However, critics argue that the high market cap may be inflated, as investors might mistakenly believe their staked ADA is locked. Additionally, questions about Cardano’s real-world adoption persist, with some alleging that its market valuation may not fully align with its actual utility and adoption within the broader crypto ecosystem.
Hoskinson’s Response to Rumors
In response to the rumors, Charles Hoskinson took to X to clarify the situation. He stated that the claims were far from accurate and that the lies and misinformation about Cardano have reached epic levels. Despite Hoskinson’s efforts, ADA’s price didn’t see an immediate positive impact, dropping from $0.35 to $0.33 shortly after his post. However, ADA soon experienced significant gains, marking its strongest price increase in weeks.
Potential Downside Risks for ADA
According to FXCrypto News analysis of IntoTheBlock data, only 23.22% of Cardano holders are currently “in the money,” while a striking 76.59% are “out of the money.” This disparity highlights potential downside risks for ADA, suggesting that a bearish sentiment could emerge if this trend continues, further impacting the token’s value shortly.
In conclusion, while Cardano has faced bearish pressure and rumors, the founder’s response and some positive technical indicators have led to price increases. However, the overall market sentiment remains cautious, and the high percentage of “out of the money” holders could lead to further volatility in ADA’s price.
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