- Cardano Cofounder Charles Hoskinson defended ADA against its “dead” tag.
- Despite the support, ADA continued to decline and bearish market sentiments persisted.
Cardano [ADA] cofounder Charles Hoskinson has recently found himself in a heated exchange with crypto analysts. This started off when crypto analyst Ben Armstrong claimed that Cardano was dead.
In a YouTube video, he claimed that ADA was dead for real, adding this time, things are different, and investors should not watch their investments get a hit.
He continued this discussion on his X (formerly Twitter) page, prompting backlash from other analysts and ADA holders.
Armstrong opined,
“Recently, I said $DOT & $ADA are both dead to institutions. Which ultimately will lead to their death as legitimate investments. This DOES NOT mean they won’t pump and offer returns to investors in this bull run. They will. Returns will just be mid.”
The statement has received widespread attention, with various players sharing contrary opinions while others criticizing his analysis of ADA’s prospects.
While responding to Ben, Dave, another crypto analyst, stated that,
“This is just your opinion, though, which I doubt has any merit now. I don’t see you presenting any technical facts as to why you think this. What’s crazy is your opinion that institutions do not care about 6.9 years of uptime.”
Apart from other analysts, one notable individual who criticized these remarks is Charles Hoskinson, Cardano’s cofounder.
On his official X page, Hoskinson claimed that Armstrong’s stand was flawed and against crypto fundamentals.
“I remember when the point of cryptocurrencies was to replace institutions instead of acting out a scene from deliverance. I guess I got to learn the banjo to make Ben happy.”
Ultimately, most investors and ADA holders agreed that crypto has not been created to beg for institutional investment. Crypto aims to decentralize the financial markets, and it belongs to the people.
What price charts indicate
But what do price charts show regarding ADA’s current trend?
Notably, AMBCypto’s analysis showed ADA was experiencing a strong bearish trend. The MACD line crossed below the signal line as well, which was strong confirmation of a bearish trend.
Source: TradingView
Equally, the Directional Movement Index further suggested a sustained downtrend as the positive index (14) sat below the negative index at 27.
Source: TradingView
Also, the RSI at 29 was below 30, which is the oversold zone, suggesting that ADA had experienced extreme selling pressure.
Although oversold precedes trend reversal, the altcoin could 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 various investors were willing to short the altcoin, anticipating further decline.
Source: Santiment
Finally, ADA’s Open Interest per Exchange declined from $64M to $55M in the last 24 hrs. This meant reduced interest and lack of enthusiasm among investors, as they appeared to have no confidence in ADA.
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Can Cardano recover?
As of this writing, ADA traded at $0.3266 after a 17.23% decline in 24 hrs. Also, it has declined by 15.33% in the last seven days.
If the downtrend continues, ADA will fall to a new support level of around $0.290. Since oversold precedes a bounce, if a reversal occurs, it will return to the previous support level of around $0.368.