Cardano (ADA) has experienced relatively minor price movements lately. In the last 24 hours, Cardano has dropped by 3.4%, trading at $0.4501 as of 12:09 UTC. However, Cardano has captured attention due to recent developments that could shape its future trajectory.
- Controversy remains over the proposed merger with BCH
- Cardano hits 90 million transactions milestone
- Cardano forming double bottom signal to potential bullish reversal
Charles Hoskinson Suggests Merger With Bitcoin Cash
The headline-making news surrounding Cardano revolves around a proposal by Charles Hoskinson, the platform’s founder, suggesting a merger between Cardano and Bitcoin Cash. In a hypothetical poll conducted via X, Hoskinson floated the idea of transforming Bitcoin Cash into a “Cardano Partnerchain” upgraded with advanced features such as Useful Proof of Work Leios, NiPoPoWs, and Ergo tech. The aim, he said, would be to create the fastest and most useful proof of work chain ever built.
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Hypothetical Poll:
Would you like to see Bitcoin Cash become a Cardano Partnerchain upgraded with Useful Proof of Work Leios, NiPoPoWs, and Ergo tech, thus being the fastest and most useful proof of work chain ever built?
— Charles Hoskinson (@IOHK_Charles) May 4, 2024
Cardano Community Not Impressed
While this proposal stirred discussion within the cryptocurrency community, it has been met with skepticism by some Cardano enthusiasts. Many argue that Cardano should focus on its development rather than diverting attention to integrating with Bitcoin Cash, which they perceive as a declining asset.
Bitcoin Cash feels like we are reaching for something that is dying and very opposite of Cardano. Why would we want that? I’d say just focus on making Cardano a powerhouse. Stand out on its own. No reason to go down rabbit holes. Kind of like Ethereum Classic.
— Matthew Davis (@matudavis) May 4, 2024
Suggestions to prioritize collaboration with EMURGO, a founding entity of the Cardano blockchain dedicated to driving ecosystem adoption, have been prevalent among community feedback.
Critics of the proposed merger highlight concerns about diluting Cardano’s unique identity and potential risks associated with associating with struggling projects. They emphasize the importance of Cardano standing out as a powerhouse in its own right, echoing sentiments similar to those expressed towards Ethereum Classic.
Cardano Hits Critical Milestone Despite Controversy
Amidst Hoskinson’s proposal controversy, Cardano has achieved a significant milestone by surpassing 90 million transactions. This achievement underscores the platform’s growing user base and adoption despite its perceived slow development progress. The milestone is particularly noteworthy given the resurgence in cryptocurrency demand, potentially invigorating demand for ADA tokens.
CARDANO $ADA HAS HIT 90 MILLION TRANSACTIONS pic.twitter.com/Hvfchq8jvJ
— TapTools (@TapTools) May 6, 2024
With controversy and positive momentum surrounding the project, Cardano’s journey promises to be eventful in the coming days and weeks. Stakeholders across the cryptocurrency ecosystem will closely watch ADA.
Let’s now do a Cardano price analysis to try and determine how it could trade as the broader market starts showing bullish signals again.
Cardano Forming A Double Bottom, A Signal To Possible Bullish Reversal
After a sustained price drop in the last 24 hours, Cardano has established strong support at $0.4478. Cardano has bounced off the $0.4478 support in the last 24 hours, forming a double bottom around this price. It would indicate a bullish reversal if Cardano Bulls can sustain momentum after bouncing off this resistance. In such a case, the critical level to watch would be the $0.4541 intra-day resistance. If Cardano Bulls can push the price through the 40.4541 resistance, then ADA could easily hit $0.4623 today.
On the other hand, if bulls fail to sustain momentum high enough to breach the $0.4541 resistance, then two scenarios would come into play. The first is a possible consolidation between the $0.4541 resistance and $0.4478 support. However, if bears take control and push ADA through the $0.4478 support, then it would mean that the double-bottom technical setup is broken. In such a scenario, Cardano could quickly drop prices as low as $0.40 today or within the week.
Which Way For Cardano?
With the controversy around Charles Hoskinson’s proposal still hot in the market, it is only natural to wonder, which way is Cardano going? Well, while it could go any way, there is a higher chance that Cardano could be headed higher in the short term. That’s because it is likely to get support from Bitcoin’s price action as Bitcoin is now showing signs of a potential rally towards $70k.
This will also likely trigger a rally in the altcoin market, and that’s good news for Cardano. Besides, ADA is also likely to get boosted by news that it has now hit a significant milestone of 90 million transactions, a pointer to rising adoption.
Read More: Cardano Price Prediction 2024 – 2040
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