Charles Hoskinson Defends Cardano Amid BitBoy Criticism but ADA Price Breaks From 5-Month Ascending Support
Charles Hoskinson Defends Cardano but ADA Price Falls | Credit: Getty Images
Key Takeaways
- Ben Armstrong, previously known as BitBoy, posted a video criticizing Cardano, which led to Charles Hoskinson’s response.
- The ADA price has fallen since March 14, breaking down from long-term support.
- Will the ADA price reclaim this support trend line, or will it turn to resistance instead?
Cardano recently came under fire, prompting a response by its founder Charles Hoskinson, who noted the blockchain’s technical capabilities and numerous positive developments slated for later during the year.
Despite the numerous positive upcoming events, the ADA price has struggled in 2024 and trades at the same price it did in January. The recent breakdown from an ascending support trend line raised concerns that the price might continue its underperformance.
Why is Cardano’s Founder Defending the Blockchain?
Charles Hoskinson made a lengthy Twitter thread defending Cardano after Ben Armstrong, known as BitBoy, posted a video alluding that “ADA is dead”. Mr. Hoskinson emphasized Cardano’s strength in scalability, innovation and community support.
He also highlighted Ouroboros Leios , stating that it is the best solution to the blockchain trilemma of security, scalability and decentralization. He blames the negativity around Cardano to the culture of focusing on short-term narratives instead of the long-term picture.
Seeing all the dunking on Cardano makes me smile a bit. We are holding all the cards as an ecosystem. We have the best path for scalability, governance, and innovation. We also have the best community.
Chang is coming soon as measured by progress on SanchoNet. Ouroboros Leios is… pic.twitter.com/11RTXaDrZU
— Charles Hoskinson (@IOHK_Charles) April 7, 2024
Mr. Hoskinson also focused on the Chang hard fork, which is the biggest upgrade since Vasil in 2022. Chang is slated for Q2 in 2024 and is the first hard fork in Cardano’s Voltaire era , centered on governance.
Chang will introduce community governance to allow the Cardano network to become fully decentralized. It will do this through three main stages:
- The introduction of Delegate Representatives
- A Cardano constitution convention where the first version of the constitution will be drafted
- A vote on ratifying the Cardano constitution.
Later on, Voltaire will add a treasury system, where a percentage of all transaction fees will be used for development activities. Despite these positive announcements, the ADA price recently broke down from a long-term ascending support trend line.
ADA Price Prediction: What’s Next After Breakdown?
The daily time frame technical analysis shows the ADA price completed a five-wave upward movement (white) starting in June 2023. The increase culminated with a high of $0.81 on March 14.
The ADA price has fallen since, first decreasing below the $0.68 resistance area (red icon) and then breaking down from a long-term ascending support trend line.
Currently, ADA seems to be in the process of validating the ascending support trend line as resistance.
The daily RSI and MACD show an undetermined trend. While both indicators are increasing, they face resistances at 50 and 0, respectively (red circles).
The ADA trend is uncertain due to these mixed readings. However, since there is significant resistance between $0.63-$0.68, the trend cannot be considered bullish until the price reclaims the level.
ADA Has Struggled in 2024
The ADA price has struggled in 2024 and currently trades at the same level it did in January. While Cardano’s founder Charles Hoskinson defended the blockchain and its capabilities, the ADA price faces critical overhead resistance, which will present an obstacle for the future trend.
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