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Cardano Price Stagnates Despite Hoskinson’s Claims
Cardano’s founder, Charles Hoskinson, has made headlines with a bold claim regarding the network’s upcoming Leios upgrade. In a recent post, he asserted that this upgrade will enhance Cardano’s transaction speed, making it faster than Solana.
Despite Hoskinson’s bullish claims about Leios, ADA’s price has shown little reaction. Over the past 24 hours, the coin’s price has dropped by 1%, accompanied by a 15% drop in trading volume.
Cardano‘s Reaction Remains Muted Despite Hoskinson’s Posts
The Ouroboros Leios upgrade will be Cardano’s major enhancement since the Chang hard fork was implemented in early September. According to a paper published by the network’s developers, Cardano will have tiered transaction fees and faster chain synchronization. Hoskinson believes it will make the network faster than Solana.
This latest jab at Solana comes as the founder continues to position Cardano as a leading contender in the so-called “Ethereum killer” race. Despite these posts, Cardano’s price reaction has remained muted. Trading at $0.33 at press time, the altcoin’s value has dropped by 1% over the past 24 hours, with trading volume also declining by 10% during the same period.
ADA’s negative price daily active address (DAA) divergence, which measures an asset’s price movements with the changes in its number of daily active addresses, confirms the poor demand for the altcoin. Santiment’s data shows that this metric has posted only negative values since September 8. This highlights the fact that buying activity has trended downward over the past nine days.
The drop in ADA’s demand over the past week is attributable to the gradual shift in sentiment from positive to negative, as reflected by its weighted sentiment. ADA’s weighted sentiment, which measures the market’s mood, is -0.20 at press time.
Read more: How To Buy Cardano (ADA) and Everything You Need To Know
When the value of an asset’s weighted sentiment is below zero, most social media discussions are fueled by negative emotions like fear, uncertainty, and doubt. This is a known marker of a sustained price downtrend.
ADA Price Prediction: 12% Price Drop If the Bulls Fail To Do This
BeinCrypoto’s analysis of Cardano’s price movements on a one-day chart reveals that the altcoin has traded within a descending triangle since July 15. This bearish pattern appears when an asset’s price forms a series of lower highs and a horizontal support level.
At press time, ADA’s price is trending closer to the support level at $0.31. Thislevel is crucial because once the price breaks below it, the bearish trend is confirmed, and the downtrend continues. If ADA bulls fail to defend support, its price may drop by an additional 12% to trade at its August 5 low of $0.27.
Read more: Cardano (ADA) Price Prediction 2024/2025/2030
If ADA experiences a resurgence in demand, it could reverse its downtrend and break through resistance at $0.36, potentially targeting $0.47.
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