Cardano (ADA) is grappling with significant challenges as its price hovers near a potential 10% decline. Investor confidence has been shaken by the alleged disappearance of founder Charles Hoskinson, who has been absent from public and social media since August 24. Adding to the uncertainty is the delayed Chang upgrade, now slated for September 1, which has dampened market sentiment.Â
The ADA price has dropped 1.5% in the last 24 hours as the community eagerly awaits a positive price reaction on the upgrade’s launch day. Meanwhile, comparisons are being drawn to the recent halt of the Ton blockchain due to network congestion following the arrest and subsequent release of its founder, Pavel Durov, further fueling speculation.
Whale Activity Rising is Good For Cardano Price
In the absence of its founder, Charles Hoskinson, the Cardano network is holding up well, as whale active addresses and whale activity have increased over the last 24 hours.
Hoskinson, an avid user of the X platform, hasn’t posted in the last four days. Followers are raising concerns about his whereabouts, especially now that Chang hard fork is only three days away.
Cardano Founder Charles Hoskinson has gone missing.
Last seen four days ago. pic.twitter.com/CMOrUtWh16
— Altcoin Daily (@AltcoinDailyio) August 28, 2024
Data from Santiment shows that the activity of whales holding $100,000 or more worth of ADA on the Cardano network increased steadily from August 24, while the price tanked for the same duration.Â
Additionally, IntoTheBlock data shows large holder netflow was positive from August 25 to 28, meaning large holders might be buying the Cardano price dip, expecting a future price increase.Â
Alternatively, Whales could be repositioning their portfolios, moving assets between wallets or exchanges for strategic reasons, which might not immediately impact the ADA price but can signal future market movements.
Active Addresses Skyrocket, But ADA Price Tanks
Despite the decline in Cardano price, active addresses surged to near-monthly highs, signaling that activity on the chain was ramping up. According to Santiment, Active addresses on the Cardano network increased by 49% to 36,184 over the last 24 hours, indicating growing interest or adoption. On the other hand, ADA transaction volume dropped in the same duration.
The AA-volume divergence could signal growing interest or adoption, but the decrease in volume could indicate cautious behavior. Users might be holding onto their assets rather than trading them, possibly due to market uncertainty.
Coinglass data shows Cardano open interest (OI) dropped 0.12% in the last 24 hours, along with the price, indicating that traders are entering shorts. The Coinglass Liquidity Map also shows more Shorts have been building up over the last 24 hours, although the difference from the Longs is small.Â
This imbalance suggests a bearish sentiment dominates the market because traders anticipate Cardano price will drop lower. It may also explain the cautious behavior of the new users depicted by the AA-volume divergence.
The Cardano price remains bullish, with the key support level around $0.32 still holding firm. Whale activity increased, showing that large investors are confident that the price of ADA will increase. The Cardano price may drop by 10% to test this support level before bouncing back to $0.39.
Frequently Asked Questions (FAQs)
Charles Hoskinson is the founder of Cardano and an active voice in the cryptocurrency community. His sudden absence from public and social media since August 24 has raised concerns among investors and the community, contributing to uncertainty and bearish sentiment in the market.
The Chang upgrade, expected to enhance Cardano’s scalability, has been delayed to September 1, dampening market sentiment as investors hoped for a timely boost to the ADA value.
The Cardano price may drop by 10% to test a key support level around $0.32 before potentially bouncing back to $0.39. The market is currently dominated by bearish sentiment, as indicated by traders opening more short positions.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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