Cardano’s founder and arguably the most important person behind the project caused some controversy in June, which led to a surge of fear, uncertainty, and doubt and a price collapse for the underlying token.
However, ADA has decoupled from the rest of the larger-cap alts over the past week or so, posting a massive 40% surge from that multi-year low.
ADA FUD Over?
It was a month ago when Charles Hoskinson said he would be taking a break from Cardano and warned that multiple projects operating on the Layer-1 blockchain might face immediate failures. The impact on the native token was immediate and violent, with ADA plummeting from over $0.20 to under $0.19, then $0.16, and ultimately below $0.14 by the end of June, its lowest price since 2020.
The overall bearish market sentiment was also a factor behind ADA’s collapse, and the subsequent revival has helped as well. However, while most larger-cap cryptocurrencies are up by 5-10% in the past week or 10 days, Cardano’s native token has staged a significantly more profound recovery.
The asset soared by over 40% since that low and tapped $0.20 earlier today for the first time in a month. The analyst from Santiment Intelligence commented on the move, suggesting that ADA has decoupled from the other alts after “peak FUD created rifts in [the] community last month.”
They added that the Cardano network is “showing signs of life again,” with nearly 15,000 non-empty ADA wallets added since the recent bottom.
“Retail support has been one of ADA’s strongest traits even through ugly market stretches. After weeks of fear, this renewed holder growth suggests the crowd is gaining trust again after a short stretch of rapid market cap growth,” Santiment concluded.
Or Possible Buy The Rumor Event?
Another major reason behind ADA’s impressive revival has been the hype around the upcoming RealFi Phase 1 Testnet upgrade. Hoskinson described it as the “largest” in the project’s history and is scheduled to be completed by July 6.
Such moves typically excite the community and are often preceded by major price rallies for the underlying asset. Once they are completed, though, the actual ‘buy-the-rumor, sell-the-news’ event takes place, and the token tanks.
For now, ADA remains one of this week’s top performers, climbing by 30% since last Sunday. Its market cap is back to $7 billion once again after it dipped below $5 billion recently.
Source: CryptoPotato
