Cardano (ADA) has faced significant negative attention due to a sharp 34% decline in its price over the past four months. This price drop has prompted various reactions within the ecosystem, with some attributing the downturn to recent developments within it.
Accusations Against Charles Hoskinson
An accusation emerged, suggesting that the APE Society—a prominent NFT project—departed from the ecosystem, causing price fall. A user directed this criticism towards Charles Hoskinson, the founder of Cardano, claiming that his actions have pushed away projects due to what they describe as toxicity.
Related article: Charles Hoskinson Highlights Leios Protocol as the Future of Cardano’s Blockchain
Charles Hoskinson took the criticism seriously and responded directly. He refuted the allegations, arguing that the exit of projects like the APE Society has actually led to a more harmonious environment within the Cardano ecosystem.
According to Hoskinson, the departure of such projects ended unnecessary drama and egos, which he views as beneficial for the community.
Implications for ADA
Hoskinson’s response suggests that despite the price decline, the overall impact on the Cardano ecosystem might not be entirely negative. He implies that the focus on long-term ecosystem growth and stability outweighs short-term market fluctuations or the loss of specific projects.
Related article: Charles Hoskinson Praises Cardano’s Chang Hard Fork as a Major Milestone
From a technical perspective, ADA’s price remains unstable. The cryptocurrency currently trades below key moving averages, including the 50, 100, and 200 EMA, indicating a long-term downtrend. This technical setup suggests a negative trend, with increased downside risk.
Recent attempts to rebound from the $0.38 resistance level have been unsuccessful while the trading volume is decreasing. However, this indicates potential further declines in ADA’s price as the market conditions continue to evolve.
