- Cardano co-founder Charles Hoskinson defended the ADA against its “dead” label.
- Despite the support, ADA continued to decline and bearish market sentiment persisted.
Cardano [ADA] co-founder Charles Hoskinson recently found himself in a heated exchange with crypto analysts. It started when cryptoanalyst Ben Armstrong declared that Cardano was dead.
He claimed in a YouTube video that the ADA is indeed dead, adding that things are different this time and investors shouldn’t watch their investments take a hit.
He continued this discussion on his X page (formerly Twitter), prompting backlash from other analysts and ADA holders.
Armstrong believed
“I recently said that $DOT and $ADA are dead to institutions. Which will eventually lead to their demise as a legitimate investment. This does NOT mean they won’t pump and offer investors returns in this bull run. They will be. The return will be only half.”
The statement received widespread attention, with various players sharing opposing views, while others criticized his analysis of the ADA’s prospects.
In response to Ben, Dave, another cryptanalyst, stated that:
“But that’s just your opinion, which I doubt has any value now. I don’t see you providing any technical facts as to why you think that. Your point that institutions don’t care about 6.9 years of uptime is crazy.”
Among other analysts, a notable person to criticize the remarks is Charles Hoskinson, co-founder of Cardano.
On his official X page, Hoskinson argued that Armstrong’s position was flawed and against the fundamentals of cryptocurrency.
“I remember when the point of cryptocurrencies was to replace institutions instead of performing a scene of deliverance. I think I need to learn the banjo to keep Ben happy.”
Ultimately, most investors and ADA holders agreed that the cryptocurrency was not created to beg for institutional investment. Crypto aims to decentralize financial markets and that belongs to the people.
What the price charts show
But what do the price charts show about the current ADA trend?
Notably, AMBCypto’s analysis showed that ADA is experiencing a strong bearish trend. The MACD line also crossed below the signal line, which was a strong confirmation of the bearish trend.
Source: TradingView
Likewise, the Directional Movement Index further indicated 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 an oversold zone, indicating that ADA has experienced extreme selling pressure.
Although oversold precedes a 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 a bearish sentiment as various investors were willing to short the altcoin expecting further decline.
Source: Santiment
Finally, ADA’s open interest on the exchange fell from $64 million to $55 million in the last 24 hours. This meant reduced interest and lack of enthusiasm among investors as they seemed to lack confidence in the ADA.
Is your portfolio green? Check out the ADA Profit Calculator
Can Cardano recover?
At the time of writing, ADA was trading at $0.3266 after a 17.23% drop in 24 hours. It has also fallen 15.33% in the last seven days.
If the downtrend continues, ADA will drop to a new support level around $0.290. As the oversold precedes the bounce, if a reversal occurs, it will return to the previous support level around $0.368.