Cardano (ADA) Faces Perfect Storm: Leaked Proposal, Short Sellers, and Delayed Upgrade

Cardano's ADA token is experiencing a rough patch, with a price decline mirroring the broader market downturn. However, internal issues are

Written by: Arslan Butt • Tuesday, August 27, 2024 • 1 min read

• Last updated: Tuesday, August 27, 2024

Cardano (ADA) Faces Perfect Storm: Leaked Proposal, Short Sellers, and Delayed Upgrade

Cardano’s ADA token is experiencing a rough patch, with a price decline mirroring the broader market downturn. However, internal issues are adding fuel to the fire.

Leaked Proposal Sparks Community Outrage

A leaked proposal requesting a hefty 200 million ADA ($74.3 million) from venture capital firm 3UTxO has sent shockwaves through the Cardano community. Many fear this could further deplete the treasury, especially with the much-anticipated Chang hard fork delay.

Charles Hoskinson Downplays Concerns, Focuses on Algorand Collaboration

Cardano founder Charles Hoskinson attempted to calm nerves, emphasizing the delay for the Chang hard fork was to ensure a smooth rollout. He also surprised many by expressing interest in a potential partnership with Algorand, praising its technology for decentralized AI projects.

Short Sellers Circle Cardano, Price Support Levels Tested

Meanwhile, short sellers are circling ADA, with data suggesting a growing bearish sentiment. The price currently sits precariously close to support zones between $0.355 and $0.367, with a potential drop threatening over $2.3 billion in losses for investors.

Despite Development Activity, ADA Price Struggles

Despite ongoing development activity surpassing even Ethereum’s on Github, ADA’s price remains under pressure. The token is currently trading at $0.379, down 4.5% in the last 24 hours.

Future Outlook Uncertain: Reversal or Correction?

Technical analysis suggests a possible price reversal if ADA can break above a key resistance line. However, the overall market trend and rising transaction fees complicate the picture. Reaching $1 by the end of Q3 seems unlikely, with a longer-term price target more realistic.