Cardano prices failed to surge with the recent implementation of full on-chain governance, as Bitcoin prices dragged the entire crypto market down on September 3. Meanwhile, the Cardano community has already begun discussing the potential burning of the 1.5 billion ADA in the Treasury to boost prices. This development sparked a debate of mixed reactions among the Cardano community.
Can ADA Burn Pump Cardano Price?
Cardano proponent Big Pey suggested that the Cardano community, which is now in full control of the chain, could initiate a vote to burn all of the 1.5 billion ADA in the Treasury.
Now that #Cardano has full on-chain governance.
There’s 1.5 Billion $ADA in the treasury. The $ADA community could vote to burn all of the $ADA.
Would you vote to burn all of the $ADA? If not, what do you think we need to spend the funds on?
— big pey (@bigpeyYT) September 3, 2024
Among the responses to the post include users who advocated locking 75% of the supply rather than burning the 1.5 billion coins, which only constitute 3.3% of the entire Cardano supply.
Others completely disregarded the idea of burning the coins, citing that it may only benefit short-term investors.
Meanwhile, Cardano founder Charles Hoskinson made critical remarks about the future of Bitcoin, suggesting that it would be better utilized in chains like Cardano.
ADA price consistently dropped lower despite trending inside a potential bullish reversal pattern.
ADA Price Analysis: Is Breakout Still In Play?
Cardano price dropped by 2.4% over the last 24 hours to trade at $0.3245, which is also a 6% drop over the last month. The broader cryptocurrency market has experienced volatility following the Bitcoin price sliding below the $57,000 mark. Despite the recent dip, Cardano remains one of the top blockchain platforms, known for its scalability, security, and energy efficiency.
According to the Cardano price analysis, ADA is currently in a falling wedge, with support around $0.30 and resistance around $0.34. The market remains cautious as traders wait for a breakout with volume confirmation before buying the asset.
The Chang hard fork news is still settling as people grapple with the impact of this news on the Cardano network. Should such a suggestion make it to proposal and voting, it may have a significant impact on the price of the asset.
ADA Price action approaches the end of the falling wedge, with little room to wiggle about. This means that the asset will have to pick a direction. While predominantly a bullish reversal pattern, falling wedges may break to the downside if the selling pressure is high.
Conversely, the Cardano price may break out of the wedge to the upside and surge 23% to the $0.40 price target. On its way up, ADA may encounter resistance around $0.35 and $0.37.
Overall, between the volatile Bitcoin price action and the newly upgraded network, Cardano is a hot asset to hold right now. A significant development on either of the mentioned fronts could drive ADA price up or down depending on the nature of the update. This currently makes Cardano a risky hold for most investors.
Frequently Asked Questions (FAQs)
Cardano price failed to rise following the implementation of full on-chain governance primarily due to the broader cryptocurrency market downturn, especially driven by Bitcoin’s decline on September 3, 2024. This market-wide slump overshadowed Cardano’s positive developments.
The Cardano community is currently debating the idea of burning 1.5 billion ADA from the treasury as a means to potentially boost the price of ADA. This discussion was sparked by a proposal from Cardano proponent Big Pey, who suggested that with the community now in full control of the chain, a vote could be initiated to burn these coins.
Given the current market volatility, particularly due to the Bitcoin price fluctuations, and the uncertainties surrounding the impact of recent network upgrades, Cardano is considered a risky investment for many traders.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/cardano-price-breakout-rejected-community-discusses-1-5b-ada-burn/
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