Cardano Price Prediction as Founder Faces Negative PR: Will ADA's Price Maintain Support?

Cardano Price Prediction as Founder Faces Negative PR: Will ADA’s Price Maintain Support?

Updated: 01 March 2023

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In the past few days, Cardano’s price declined below its $0.388 and $0.380 support levels after some negative PR, putting it in a potentially bearish zone as it currently hovers around the $0.36 mark.

ADA’s immediate resistance stands at $0.42, which is its swing high. ADA’s price will need to hold within the immediate support range of $0.3487 to $0.3579 to establish an upward trajectory. However, as long as the price remains below the $0.3800 resistance zone, it may continue to move downward in the short to medium term.

Ultimately, ADA’s price direction may be dictated by macroeconomic factors unless other news pushes it in either direction–such as the negative PR from a recent Reddit user letter calling out its founder, Charles Hoskinson, for alleged alt-right sympathies. While Hoskinson has responded and pushed back against the accusations, the negative attention may have contributed to ADA’s price decline.

ADA Price Fundamental Analysis and Background

Cardano is a third-generation blockchain technology created by Charles Hoskinson, co-founder of Ethereum. By using a Proof-of-Stake (PoS) consensus mechanism, Cardano consumes less electricity than Proof of Work (PoW) cryptocurrencies, making it a more sustainable approach to blockchain technology. Cardano’s protocol, Ouroboros, also enables it to process a higher volume of transactions than many other blockchains.

The negative PR Cardano is currently facing stems from a recent open letter posted by a Reddit user under the name Demesisx. The letter accuses Cardano’s founder, Charles Hoskinson, of having alt-right sympathies and making misleading statements about the technology behind Cardano. Hoskinson responded to the accusations by posting a letter of his own, in which he pushed back against the accusations made by Demesisx.

The exchange between Hoskinson and Demesisx has sparked a social media debate, with some investors concerned about the potential negative impact on Cardano’s reputation. One can’t discount the possibility of continued negative PR if allegations made against Hoskinson and Cardano are established to be true in the eyes of the public–along with the risks this may pose to the project. In addition to the recent negative PR, Hoskinson has also been called out for lies he posted about his education, which seem to have been confirmed.

While this PR challenge seems to be a setback for Cardano, it could also fade into the background, and ADA’s price may ultimately be impacted more by macroeconomic factors, network upgrades, the wider cryptocurrency market, and the project’s progress in being adopted for real use cases globally.

Cardano has also made a name for itself as one of the primary blockchain projects targeting the continent of Africa, for example, with a goal of offering a modern financial and decentralized data framework in a region that desperately needs one.

With the youngest population on the planet and a growing middle class, two of Africa’s biggest problems are corruption and inflation. Cardano is working to provide secure digital education records in Ethiopia, creating supply chain solutions for the coffee industry, developing mobile internet access in Tanzania, and promoting decentralized governance.

If Cardano successfully makes genuine inroads into the continent and can provide ongoing innovation, these partnerships, along with potential increased use in other parts of the world, could position Cardano well for future growth.

ADA’s Price Prediction and Technical Analysis

The 20-day Exponential Moving Average (EMA) sits at $0.3759, while the 50-day EMA is slightly lower at $0.3664, and the 100-day EMA is at $0.3608. The RSI currently stands at 45.42, indicating a neutral trend.

Looking at the MACD indicator, the previous day’s MACD histogram was -0.0057, while the current day’s histogram is -0.0052. This suggests a slight upward momentum in the short term, but the trend is still neutral.

ADA’s immediate resistance stands at $0.42, which is its swing high. As mentioned, ADA’s price will need to hold within the immediate support range of $0.3487 to $0.3579 to enter an upward trajectory. Falling below this crucial support area may signify an increasing bearish trend, with the next support level at $0.3300.

Overall, Cardano’s technical indicators suggest a neutral trend, with a potential for slight upward momentum in the short term. The current price movement has been largely neutral, but with decreasing volume, it remains to be seen whether momentum will build. Investors should watch for a break of ADA’s current range to determine the next direction of ADA’s price.

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