Cardano Eyes 40% Surge: Can ADA Break $0.76 and Reclaim the $1 Milestone?

Cardano (ADA) is back in focus with a 4.32% intraday gain, now at $0.7130. This is a bullish engulfing candle after a weekend dip. The price is setting up for a test of the resistance at $0.762 – an area that has capped multiple rallies since March.

ADA’s chart is now an inverted head and shoulders, a classic bullish setup. The two swing lows at $0.682 and $0.557 are the base, the neckline is at the 23.60% Fibonacci retracement level at $0.762. A close above this neckline could confirm the pattern and trigger a 40% move to $1.08 – the 50% Fibonacci level.

Cardano (ADA) Technical Analysis Update:

Cardano (ADA/USD) is at $0.7130, above the 50 day EMA at $0.6796 – a key short term support. This move with a strong bullish MACD crossover is bullish. Immediate resistance is at $0.7226 – a descending trendline.

For a trade, a break above $0.7226 with volume could be a continuation to the next resistance at $0.7349. But if price fails to clear this level, a pullback to $0.6988 or even the 50 EMA at $0.6796 is possible.

Potential Trade Setup:

• Buy Above: $0.7226

• Take Profit: $0.7349

• Stop Loss: $0.6988

Key Technical Indicators:

• RSI: Above 50 – bullish.

• CMF: -0.08 – weak buying pressure.

• Supports: $0.6988, $0.6796, $0.557.

• Resistances: $0.7226, $0.7349, $0.762.

Fund Transfer Allegations Stir Debate

Cardano is up as Charles Hoskinson and Input Output Global (IOG) are in the hot seat again. Masato Alexander, a vocal critic, claims 318 million ADA was moved from unclaimed ICO vouchers to the network reserves using MIR (Move Instantaneous Rewards) transactions.

According to Alexander:

• Only ~$7 million has been transferred back to buyers.

• 25 million ADA was staked from the moved funds.

• Governance manipulation and lack of transparency is the accusation.

If true, this could be a problem for investors. But the broader Cardano community and developers are denying the claims.

Hoskinson Denies, Community Backs Him

Charles Hoskinson is denying the allegations. He said 99.8% of ADA ICO vouchers were redeemed and the unclaimed 0.2% (with no private keys) were legally moved to Intersect after 7 years.

Hoskinson called the accusations “defamatory” and threatened legal action. Jonathan Morgan, a blockchain analyst, backed him up saying the claims are misleading and the protocol changes were consensus driven not unilateral control.

Community Highlights:

• 300 million ADA returned to rightful claimants.

• Unredeemed vouchers treated within the legal framework.

• Upgrade was consensus driven.

Cardano’s chart and sentiment is setting up for a big move. While governance is a concern, strong community support and transparent communication from Hoskinson might keep the bullish momentum going.