Cardano’s Charles Hoskinson Takes on the Market In ADA’s Defense

Cardano’s (ADA) founder Charles Hoskinson is in the news again, and as expected, he has been caught up in another round of controversy. A few weeks back, Hoskinson had argued that ADA was outperforming Solana (SOL) in terms of its price action.

But on October 17, Michael Deckard, a user on X (formerly Twitter) gave Hoskinson a piece of his own cake, showing that SOL had outperformed ADA in the 24 hours. From the chart displayed, SOL gained 8.97% while ADA had to make do with a mere 0.95% increase.

In response to the post, Hoskinson said Deckard had no point and the top gainer is not merely by number but by whichever a platform like CoinMarketCap says it is.

And how would you feel if CMC said Cardano is the top gainer given those numbers? That was my point

— Charles Hoskinson (@IOHK_Charles) October 17, 2023

Meanwhile, ADA was not able to follow in Bitcoin’s (BTC) direction after the fake news a particular ETF had been approved. In the last 24 hours, the token hovered around the same $0.25.

What’s Next for ADA?

On the daily ADA/USD timeframe, bulls were beginning to take control of the market. In fact, the recovery to $0.251 was a result of the demand created at $0.245 on 13 October. However, it is likely that ADA may fail to move much higher than $0.255 due to the Chaikin Money Flow (CMF) indicator.

At press time, the CMF was -0.18. This negative value implies that ADA had recorded a decrease in capital flow as shown by the southward movement. This plunge into the negative territory also means that buying pressure may not outlast selling pressure in the short term. Hence, it is not out of place to expect ADA to fall to $0.235.

ADA/USD 4-Hour Chart (Source: TradingView)

This sentiment was also shared by the Relative Strength Index (RSI) above. At the time of writing, the RSI was 46.77, meaning bearish momentum was stronger than bullish presence. However, there is a chance for the ADA price to sustain $0.25 if the RSI hits and crosses 50.00.

On the derivatives end of the market, ADA’s open interest had decreased. For context, open interest is the number of outstanding futures or options contracts at the end of a trading day. When the open interest increases, it depicts high liquidity in the market. Conversely, a falling open interest means a dearth of liquidity propelled towards an asset.

ADA’s Open Interest (Source: Coinglass)

With ADA’s price action consolidating, and a declining open interest, the cryptocurrency could be set for another bearish move. This may be the case as long as buying pressure or ADA’s liquidity doesn’t spike.

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