- Cardano co-founder Charles Hoskinson defended ADA against the ‘dead’ label.
- Despite the support, ADA continued to decline and pessimistic market sentiment persisted.
Cardano [ADA] Co-founder Charles Hoskinson has recently found himself in a heated debate with crypto analysts, which began when crypto analyst Ben Armstrong claimed that Cardano was dead.
In a YouTube video he claimed that ADA was really dead. This time things are different and investors should not watch their investments take a hit.
He continued this discussion on his X page (formerly Twitter), which earned him criticism from other analysts and ADA holders.
Armstrong believed,
“I recently said that $DOT and $ADA are both dead to institutions. Which will ultimately lead to their death as legitimate investments. This does NOT mean they won’t pump and provide returns to investors in this bull run. They will. Returns will simply be average.”
The statement received widespread attention, with several players sharing opposing views, while others criticized his analysis of ADA’s prospects.
In response to Ben, Dave, another crypto analyst, stated the following:
“However, this is just your opinion, which I doubt has any value now. I don’t see you presenting any technical facts about why you think this. What is crazy is your opinion that institutions don’t care about 6.9 years of uptime.”
Among other analysts, there was also one person who criticized these comments: Charles Hoskinson, co-founder of Cardano.
On his official X page, Hoskinson claimed that Armstrong’s position was flawed and contrary to the basic principles of cryptocurrency.
“I remember the goal of cryptocurrency was to replace institutions rather than reenact a scene from liberation. I think I had to learn to play the banjo to make Ben happy.”
Ultimately, most investors and ADA holders agreed that crypto was not created to beg institutional investment. Crypto is focused on decentralizing financial markets and belongs to the people.
What price charts indicate
But what do price charts show about the current trend of ADA?
Interestingly, AMBCypto’s analysis showed that ADA was in a strong bearish trend. The MACD line also crossed below the signal line, which was a strong confirmation of a bearish trend.
Source: TradingView
Similarly, the Directional Movement Index indicated a continued downtrend as the positive index (14) was below the negative index of 27.
Source: TradingView
Moreover, the RSI at 29 was below 30, which is the oversold zone. This suggests that ADA experienced extreme selling pressure.
Although oversold precedes a trend reversal, the altcoin may remain in the oversold zone for a long time.
Source: Coinglass
Looking further, according to Coinglass, ADA had a negative Ol-Weighted Funding Rate of -0.0085%. This showed bearish sentiment as several investors were willing to short the altcoin, expecting further declines.
Source: Santiment
Finally, ADA’s Open Interest per Exchange dropped from $64M to $55M in the last 24 hours. This signified decreased interest and lack of enthusiasm among investors as they seemed to have no confidence in ADA.
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Can Cardano Recover?
At the time of writing, ADA is trading at $0.3266 after a 24-hour drop of 17.23%. It is also down 15.33% over the past seven days.
If the downtrend continues, ADA will drop to a new support level around $0.290. Since oversold precedes a bounce, a reversal will see ADA return to the previous support level around $0.368.