Cardano Price Falls Amid Hoskinson’s Governance Reform Calls: Can ADA Hit $1.53?

Highlights

• Cardano’s price has dropped by 5.6% in the past 24 hours, trading at $0.9827.
• Charles Hoskinson has criticized the Cardano Foundation’s Swiss-based governance model.
• Hoskinson has proposed relocating the foundation to Abu Dhabi or Wyoming.

The Cardano price has plunged by 5.6% in the last 24 hours to trade at $0.9827 as of 5:48 a.m. EST on a 29% increase in trading volume to $2 billion. This plunge in the price of Cardano comes amid recent calls by Charles Hoskinson for reform in the way the Cardano Foundation is governed. Hoskinson has been very vocal about the lack of transparency in the current Swiss-based governance system, saying it does not involve the community in key decision-making processes.

Hoskinson Urges Cardano Foundation Relocate to Abu Dhabi https://t.co/XhYpDIgrlW

— Cardano Feed ($ADA) (@CardanoFeed) December 18, 2024

According to him, the Swiss model, wherein board members are appointed by the authorities and not elected by the community, separates the foundation from its users. To that effect, Hoskinson has suggested the shifting of the Cardano Foundation to more progressive jurisdictions such as Abu Dhabi or Wyoming, which he believes can apply community-driven board elections- a form of governance that leans heavily toward decentralization and inclusiveness.

This can help regain the lost user trust in Cardano and rebuild the foundation’s commitment to its decentralized tenet. But the slumping market suggests that even now, investors are having cold feet despite the breadth of these change proposals.

Cardano Price Statistics

• Cardano price: $0.9827
• Market cap: $35 billion 
• Trading volume: $2 billion
• Circulating supply: 35 billion 
• Total supply:  45 billion 

Cardano Price Analysis: Bulls Gear Up for a Bullish Breakout

The price of Cardano has recently been showing an uptrend, which reflects the strength of the bull on the market. The bulls have also shown their strength by managing to pull up Cardano’s price from the $0.8612 support level, which is located at the lower trend line of the bearish channel.

This movement has confirmed a possible bullish breakout above the bearish channel, thus giving indications that the market may be changing from a bearish to a bullish trend, thereby giving the buyers hope.

The Cardano price is trading below the 50-day and 200-day simple moving averages, but this may change soon as the bulls are working hard to push the price upwards, breaking above the 200-day SMA. If the price of Cardano succeeds in breaching both SMAs, both the 50-day and the 200-day SMA will act as crucial support levels that strongly support the possibility of a bullish trend.

Bullish Technicals Indicate an Upward Momentum

Meanwhile, the Relative Strength Index also stands at 34.76 and is trending upward towards the 50-midline level. A movement of the Cardano price across the midline level will indicate a high possibility for a bullish crossover.

Additionally, the MACD is providing further evidence of a potential bullish crossover: red histogram bars are reducing in size and number as they fade out in color. On the other hand, the blue line has spiked to cross above the orange signal line.

After consolidating at the $0.8612 support, the bulls have shown great strength in pushing the price upwards toward the target price of $1.53. On the other hand, if the bears sustain the momentum, then they pull the price to $0.8069. This, in turn, will benefit the sellers.