Cardano Price Could Drop 10% Due to $74M Proposal Issue

In This Post:

• ADA price might drop to $0.33, risking $2.3B in losses.
• A 200M ADA proposal sparks disagreement within the community.
• More traders are betting on ADA’s price drop, showing a negative trend.

Cardano’s Price Drop

Cardano‘s price has fallen 4.5% in the past day, while the overall crypto market went down by 1.7%. Many traders expect more price drops. A leaked proposal asking for 200 million ADA tokens has upset the Cardano community. This follows a delay in the important Chang upgrade.

Current ADA Price: $0.367 USD
1 hour Price Change: 0.1%
24 Hour Price Change: -4.7%
24 Hour Volume: 288,284,418#Cardano #CardanoCommunity #BareMetal #CardanoSPO $ADA

Stake with Ticker SNDHL … Chang Ready!

— Sand Hill Cardano Stake Pool (@SandHillio) August 27, 2024

The Problematic ADA Proposal

A group called 3UTxO is asking for 200 million ADA (worth $74.3 million) as part of the Voltaire system launch. The news leaked on August 26, worrying the community. Cardano supporter Jaromir Tesar said there isn’t enough ADA for such a big request. Cardano founder Charles Hoskinson confirmed they delayed the Chang upgrade to September 1 to make sure it’s done correctly.

#ADA Price Has Crossed Below Its 50D SMA

Price: $0.366
50D SMA: $0.381#ADA spent 1411 days (55.95% of its history) below its 50D SMA#Cardano #Cryptocurrency #Crypto #SMA pic.twitter.com/cKjFg84JCT

— Indicator Hawk | Crypto Alerts (@indicator_hawk) August 26, 2024

More Traders Betting Against ADA

Data shows more traders are betting on ADA’s price going down. Many are shorting ADA, meaning they expect the price to fall. Currently, there’s more money betting on a price drop than an increase, showing a negative trend.

Risk of Big Losses

If ADA’s price falls below certain levels, big losses could happen. Data from IntoTheBlock shows over $2.3 billion worth of ADA is at risk if prices fall too low. Support levels between $0.355-$0.367 and $0.331-$0.347 are important. If the price drops below these levels, ADA holders could face large losses.

Signs of a Continued Decline

Other signs point to more drops in ADA’s price. Trading “open interest” went up by 5.27% while the price dropped by 4.5%, showing more bets on a price fall. Charts also show more positions expecting the price to go down.

Looking Forward

Cardano is facing tough times. The large ADA proposal has caused tension in the community, and trading patterns show more price drops might be coming. This could lead to major losses for ADA holders. The next few days are crucial for ADA’s price, and it’s important to watch how things develop.