Cardano Foundation Responds to ADA Speculations, Triggering Market Volatility
From the beginning of September, Cardano [ADA] has been under consistent downward pressure, as indicated by critical technical signals.
The MACD has consistently stayed below the Signal line, displaying red histograms until a bullish crossover occurred on September 9th.
This favorable shift was further confirmed by the RSI, which moved from below the neutral level to enter the positive zone by September 10th.
Despite the optimistic signals from technical indicators, the price increases were moderate and largely overlooked until Charles Hoskinson, the founder of Cardano, addressed rumors surrounding the project on X platform.
This led to a 4.75% increase in ADA, pushing its trading price to $0.3549.
As per the latest update on CoinMarketCap, Cardano recorded a 10% weekly gain, surpassing both Bitcoin [BTC] and Solana [SOL] during the same timeframe.
Speculations Circulating Cardano
For those who are not aware, on September 11th, a group of prominent crypto analysts, including MartyParty, CTO Larson, InvestAnswers, and Mando, discussed Cardano’s market position in a podcast shared on X platform.
The discussion focused on the reasons behind projects like Cardano and Ripple [XRP] maintaining substantial market capitalizations despite recent lackluster price performances.
One stakeholder, Stake with Pride, responded by stating,
“Cardano is the only leading coin with inherent liquid staking. No staked ADA is ever locked and no LSDs/LSTs are needed.”
It was also mentioned that some critics suggest the high market cap may be inflated, with claims that investors might falsely believe their staked ADA is inaccessible even though it is not.
Furthermore, doubts regarding Cardano’s real-world adoption persist, with some asserting that its market valuation may not completely align with its actual functionality and acceptance within the wider crypto community.
Mando reiterated these points and even suggested that constraints on unstaking ADA might be artificially inflating the market capitalization.
He even referenced an old post by Hoskinson where he asserted,
“The primary threat to #Bitcoin’s dominance has always been and will always be #Cardano.”
To which Mando added,
Hoskinson’s Reaction to Speculations
In response to the rumors, Charles Hoskinson posted on X to clarify the situation, emphasizing that the claims were highly inaccurate. He said,
“The false information and misconceptions about Cardano have reached incredible levels. Stakes are not locked, yet they persist in lying. Why would anyone trust these individuals any longer?”
Despite Hoskinson’s attempts to dispel the rumors, ADA’s price did not witness an immediate positive response.
Shortly after his post, the token fell from $0.35 to $0.33, indicating that his statement did not lead to an upward trend.
Nevertheless, it wasn’t long before ADA saw significant gains, marking its most substantial price surge in weeks.
ADA’s Price Outlook Appears Uncertain
However, based on CryptoCrypto’s evaluation of IntoTheBlock data, only 23.22% of Cardano holders are currently “in profit,” with their tokens valued higher than their initial purchase price.
In contrast, a significant 76.59% of holders are “at a loss,” holding ADA that is worth less than their initial investment.
This contrast underscores potential downside risks for ADA, implying that a bearish sentiment could emerge if this situation persists, further influencing the token’s value in the near future.