Cardano Drops 75% Against Bitcoin Since Hoskinson's BTC Longevity Doubts

2 min read | September 04, 2024 10:45 PM AEST | By Team Kalkine Media

Google News:

Cardano Drops 75% Against Bitcoin Since Hoskinson's BTC Longevity Doubts — Image source: Shutterstock

Recent News

ASX Technology Leaders on ASX 200 Revenue and Scale

Can Hidden ASX Names Become Tomorrow’s Market Leaders?

How Are ASX 300 Gold Miners Responding to Record Gold?

ASX Gold Mining Outlook on ASX 100 Costs and Cash Flow

Make Kalkine Media
My Trusted Source

Cardano (ADA) has experienced a significant decline in its price relative to Bitcoin (BTC) following critical comments made by Cardano founder Charles Hoskinson. After breaking below a key support level, the ADA/BTC trading pair could face a further decline of approximately 25% in the coming months.

Historically, ADA’s price has reacted negatively to Hoskinson's criticisms of Bitcoin. A notable example occurred nearly two years ago when Hoskinson questioned Bitcoin’s future viability in an interview. At that time, the ADA/BTC trading pair was valued at around 2,188 satoshis (one satoshi equals 0.00000001 BTC). As of September 3, this value has plummeted to approximately 562 satoshis, marking a 75% drop and approaching its lowest levels since December 2020.

This pattern of decline has persisted with Hoskinson’s subsequent remarks, including comparisons of {Bitcoin} (BTC) to a “washed-up football star” in June 2021, likening Bitcoin to a religion in April 2024, and his assertion in May 2024 that the industry no longer needs Bitcoin. In June 2024, Hoskinson claimed Cardano would eventually surpass Bitcoin. The ADA/BTC pair has dropped nearly 94% from its all-time high in January 2018, reflecting the broader impact of Hoskinson’s comments on ADA’s value relative to Bitcoin.

Currently, the ADA/BTC pair is trading within what appears to be a falling wedge pattern, traditionally viewed as a bullish reversal signal. If the pattern holds true, the pair might experience a rise of up to 25% by the end of 2024, bringing its value to approximately 694 satoshis.

However, the longer-term outlook remains uncertain. The ADA/BTC pair fell below its lifetime ascending trendline support in May 2024, coinciding with Hoskinson's claim that Bitcoin was no longer essential to the industry. The pair has continued to decline since then, and further drops could see ADA testing the 1.0 Fibonacci retracement level at around 413 satoshis, which would represent an additional decline of about 25% from current levels.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.