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Due to a strong decline in price, valued at approximately 34% during the previous four months, Cardano has gained some negative attention. One possible explanation for the crash, according to a tweet addressed to the Cardano founder, is that the APE Society, a well-known NFT project, is leaving the Cardano ecosystem.Â
The user went on to accuse Charles Hoskinson, the founder of Cardano, of pushing away projects with what he calls toxicity. Charles Hoskinson took this criticism seriously.
He basically refuted the charges in his response. According to Hoskinson’s post, the Cardano ecosystem is now more peaceful because these projects are no longer ongoing, and the drama and ego associated with them have also ended. He seems not to consider APE Society’s demise to be a major loss, based on his reply.
Rather, it appears that he thought the project’s cancellation was good for the Cardano community because it eliminated what he considered to be needless toxic drama. One interpretation of Hoskinson’s comments is that even though the value of ADA has fallen, not all losses are ultimately detrimental.Â
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His emphasis on the expansion and well-being of the ecosystem rather than on ephemeral market shifts or the demise of specific projects serves to bolster the notion that Cardano is heading toward sustainability. Yet technical analysis indicates that ADA’s price has been unstable.
The price action of ADA is below significant moving averages such as the 50, 100 and 200 EMA, indicating a long-term downtrend. This implies a negative trend. There seems to be more downside risk now that the recent attempt to recover was rejected at the $0.38 resistance level and the volume is fading.Â
To indicate a significant recovery in the future, ADA must break above these resistance levels. Up until that point, the market is still cautious, particularly in the larger crypto space – where altcoins like Cardano are still negatively impacted by general bearishness.
