Since the beginning of September, Cardano [ADA] has been under persistent bearish pressure, with key technical indicators reflecting its struggle to regain upward momentum. The Moving Average Convergence Divergence (MACD) indicator showed bearish signals, remaining below the signal line for much of the month, and printing red histograms. However, a positive shift occurred on the 9th of September, when a bullish crossover hinted at potential recovery.
Further strengthening this trend, the Relative Strength Index (RSI) climbed from a neutral position into the bullish zone by the 10th of September. Yet, despite these technical indicators signaling optimism, ADA’s price gains remained modest and went largely unnoticed until Charles Hoskinson, the founder of Cardano, stepped in to address swirling rumors surrounding the project on social media platform X (formerly known as Twitter).
This intervention triggered a 4.75% surge in ADA, pushing its trading price to $0.3549. As of the latest CoinMarketCap update, Cardano has recorded a notable 10% weekly gain, outperforming major cryptocurrencies like Bitcoin [BTC] and Solana [SOL] during the same period.
Rumors Stir Market Sentiment
On September 11th, prominent crypto analysts such as MartyParty, CTO Larson, InvestAnswers, and Mando took part in a podcast on X, discussing Cardano’s market standing. The discussion revolved around why projects like Cardano and Ripple [XRP] maintain such high market capitalizations. Critics argued that Cardano’s large market cap might be inflated, with some investors mistakenly believing that their staked ADA is locked and inaccessible, when, in fact, it isn’t.
Further fueling skepticism, some questioned Cardano’s real-world adoption, suggesting that its market valuation might not be fully aligned with its actual utility and usage in the broader cryptocurrency ecosystem. Mando, one of the podcast participants, even suggested that restrictions on unstaking ADA could be keeping the market cap artificially high.
Hoskinson Responds to Accusations
In response to the rumors, Charles Hoskinson took to X to dispel the claims, calling them inaccurate. He emphasized that ADA staking is not locked and that the project’s value is rooted in its strong community and technical development. Despite his efforts to clarify the situation, ADA’s price initially saw a dip from $0.35 to $0.33, reflecting a market that seemed unphased by Hoskinson’s defense.
Nevertheless, the token soon rebounded, marking one of its strongest price surges in weeks. This price action suggests that while rumors may have briefly shaken market confidence, bullish technical indicators and investor interest helped Cardano regain footing.
ADA’s Price Faces Uncertainty
Despite this recent uptick, market sentiment around ADA remains cautious. According to IntoTheBlock data, only 23.22% of Cardano holders are currently “in the money,” meaning their holdings are valued higher than their initial investment. On the other hand, a striking 76.59% of holders are “out of the money,” holding ADA worth less than their purchase price.
This disparity highlights potential downside risks for ADA, suggesting that if this trend continues, bearish sentiment could reemerge, putting further downward pressure on the token.
Also Read: Cardano (ADA) Set For 1,000% Surge? Dan Gambardello Highlights Bullish Indicators
Cardano has had a tumultuous September, marked by mixed signals from technical indicators and market rumors. While bullish crossovers in the MACD and rising RSI levels suggest potential for upward momentum, the broader market remains skeptical about ADA’s valuation and utility. With founder Charles Hoskinson stepping in to dispel rumors, Cardano has temporarily regained some lost ground, but the future trajectory of ADA’s price remains uncertain as the crypto market continues to watch closely.
As always in the volatile world of cryptocurrency, investors will need to weigh both the technical indicators and the external factors that shape market sentiment.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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