Cardano Price Plummets 8% As Charles Hoskinson Offers to Help Elon Musk’s DOGE

Cardano price has gone through elevated volatility as it crashed by over 8% on Monday. ADA’s crash mirrored other cryptocurrencies, including Bitcoin, which dropped below $100,000. It also crashed after Charles Hoskinson offered Elon Musk help on his plan to use blockchain to reduce government spending.

Cardano Price Slips After Hoskinson Offer to Elon Musk

Charles Hoskinson, Cardano’s founder, offered to help Elon Musk in his plan to use blockchain to improve the Department of Government Efficiency (DOGE). He was responding to a Bloomberg article that said that Musk wanted to use blockchain to reduce government waste. 

The report also noted that Musk was planning to talk with numerous public blockchains. Cardano, would fit the bill since it is an American chain and is the only one to have a voted in constitution by its holders. Other potential American blockchains that may be used to track government spending are Solana and Hedera Hashgraph. 

However, the Bloomberg report also warned that blockchain adoption is not guaranteed to be successful in cutting costs and boosting efficiency. It cited many companies that adopted blockchain to cut costs only to find the process more costly.

Cardano price would likely do well if Elon Musk selected it for the DOGE project. 

ADA Price Bullish Trend is Still Intact

Technicals suggest that the Cardano price has pulled back in the past few weeks. While this decline is not good for holders, there are signs that the recent bullish trend is still intact. 

The first reason is that the ADA price has formed a bullish pennant chart pattern on the weekly chart. The recent consolidation is part of the formation of this pattern’s pennant section.

Further, Cardano has formed a break-and-retest pattern by moving back to the key support level of $0.810. This level was notable because it was the highest swing in March last year and the upper side of the cup-and-handle pattern. 

There are also signs that the ADA price is forming the impulse wave of the Elliot Wave pattern. It has already completed the first phase and the ongoing retreat is part of the second phase. If the wave works out well, it means that the coin will jump to the 61.8% retracement point at $2 in the longer term. 

A drop below the support at $0.800 will invalidate the bullish ADA price forecast as it will signal that there are more sellers left who are ready to push it lower.

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crispus

Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.

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.