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.
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.
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.