Despite Allegations Against Founder Charles Hoskinson, Cardano (ADA) Maintains Its Key Support Level

The cryptocurrency has shown resilience in the face of controversy, up 1.4% in the past 24 hours while experiencing a 5.6% decline over the past week.

The price of Cardano (ADA) is showing surprising resilience in the face of serious allegations against its founder Charles Hoskinson.

The cryptocurrency has managed to maintain a key support level of around $0.74 despite a slew of claims from NFT artist Masato Alexander.

This comes as trading volume has decreased by 15% over the past 24 hours, reaching $856 million.

This represents a decline from the previous day’s activity but keeps things busy overall.

To put things in perspective, the total market cap of crypto is still a long way off its all-time high (ATH) of $3 trillion, which was reached in November 2021.

Currently, it stands at about $1.86 trillion.

At the moment, Cardano is trading at a price that sits roughly 75% below its own ATH of $3.09, having reached that peak in September 2021.

At the time of writing, ADA is changing hands at $0.75, showing a 1.4% uptick in the past 24 hours.

However, the cryptocurrency has experienced a 5.6% decline over the past week.

This contrasts with a 0.4% rise over the past 14 days and a 21% surge over the past 30 days.

Technical Analysis Of The Relative Strength Index

Technical indicators suggest that ADA is in a consolidation phase. The relative strength index of 51.7 indicates neutral momentum, while the MACD shows a negative crossover with minimal upward pressure, presenting a somewhat bearish outlook.

The 10-day and 20-day moving averages (both EMAs and SMAs) are currently acting as resistance points, suggesting short-term selling pressure in the capacity.

However, longer-term support is provided by the 30-, 50-, 100-, and 200-day moving averages, which continue to trend upward.

This suggests that sellers might intervene if the price attempts to fall further.

ADA’s ability to maintain its position above the 100-day EMA at $0.73 may be crucial to preventing further losses.

If buyers can reclaim the 10-day EMA near $0.76, the price could potentially move toward $0.78 or higher.

However, if current support levels fail to hold, the price might drop below $0.72 and possibly reach $0.70 or even $0.68.

The market appears to be waiting for a catalyst, resulting in a neutral outlook for now.

Despite the controversy, on-chain data analysis shows increased capital inflow into crypto investment products.

This is partly being driven by geopolitical and economic uncertainty.

The latest data from Netflows, which tracks capital flows into major crypto investment products, indicates that capital continues to flow into Bitcoin (BTC) products.

This has helped to maintain some bullish sentiment for ADA.

In the daily timeframe, ADA price has established a rising trend over recent weeks.

After breaking out of a macro-falling wedge pattern in April, the price has gradually gained bullish momentum characterized by higher highs and higher lows.

The Cardano Foundation has promised a full audit of the treasury transactions, which is expected to be conducted in the coming weeks.

The results of this audit could serve as a significant price catalyst in either direction.

Following the backlash, Hoskinson stated that he was “deeply hurt” by the community’s reaction and indicated that he would likely step back from social media for some time.