CoinWen News Report:
Cardano co-founder Charles Hoskinson defended ADA and opposed its “death” label. Despite support, ADA continues to decline, with ongoing market pessimism.
Cardano [ADA] co-founder Charles Hoskinson recently found himself engaged in a heated exchange with a cryptocurrency analyst. This began when cryptocurrency analyst Ben Armstrong claimed that Cardano was dead.
In a video on YouTube, he claimed that ADA was truly dead, and added that this time it was different and investors should not watch their investments take a hit.
He continued this discussion on his X (formerly Twitter) page, which sparked strong opposition from other analysts and ADA holders.
Armstrong believed,
“Recently, I said $DOT and $ADA are dead for institutions. This will ultimately lead to their death as legitimate investments. That doesn’t mean they won’t provide returns to investors in this bull market. They will. Returns will just be moderate.”
This statement garnered widespread attention, with many players holding opposing views, while others criticized his analysis of ADA’s prospects.
Another cryptocurrency analyst Dave responded to Ben, saying,
“But that’s just your opinion, and I doubt it has any value now. I don’t see you presenting any technical facts to explain why you think so. What’s crazy is that you think institutions don’t care about 6.9 years of normal operation.”
In addition to other analysts, one notable figure criticizing these statements was Cardano’s co-founder Charles Hoskinson.
On his official X page, Hoskinson claimed that Armstrong’s position was flawed and violated the fundamental principles of cryptocurrency.
“I remember the purpose of cryptocurrency was to replace institutions, not perform a rescue scene. I guess I have to learn the banjo to make Ben happy.”
Ultimately, most investors and ADA holders agreed that the creation of cryptocurrency was not meant to beg for institutional investment. Cryptocurrency aims to decentralize the financial market and belongs to the people.
What do the price charts show?
However, what does the price chart show about ADA’s current trend?
It is worth noting that AMBCrypto’s analysis shows that ADA is currently experiencing a strong bearish trend. The MACD line has also crossed below the signal line, which strongly confirms the bearish trend.
Similarly, with the positive index (14) lower than the negative index (27), the Directional Movement Index further indicates the continued downward trend.
Furthermore, the RSI at 29 is below 30, which is the oversold zone, indicating extreme selling pressure on ADA.
Although oversold precedes trend reversal, altcoins may stay in the oversold zone for a long time.
Furthermore, according to Coinglass data, ADA’s Ol weighted funding rate is -0.0085%. This indicates bearish sentiment, as various investors are willing to short altcoins, anticipating further decline.
Lastly, in the past 24 hours, the open interest of ADA on each exchange has dropped from $64 million to $55 million. This signifies a decrease in investor interest and lack of confidence in ADA.
Is your portfolio in the green? Check the ADA profit calculator.
Can Cardano recover?
At the time of writing, ADA’s trading price is $0.3266, after a 17.23% decline in the past 24 hours. Additionally, it has also declined by 15.33% in the past seven days.
If the downward trend continues, ADA will fall to a new support level of around $0.290. Due to oversold preceding a rebound, if a reversal occurs, it will return to the previous support level of around $0.368.