Cardano (ADA) is facing a critical moment as its price hovers around the key support level of $0.74, despite ongoing controversy involving serious allegations against its founder. Over the past 24 hours, ADA has seen a modest 1.4% gain, although it's still down 5.6% over the week.
While 24-hour trading volume has dropped 15% to $856 million, market activity remains steady. However, ADA continues to trade nearly 75% below its all-time high of $3.09, recorded in September 2021.
⚖️ Allegations of Fund Misuse Shake the Project
The market has been stirred by accusations from NFT artist Masato Alexander, who claimed on May 7 that Charles Hoskinson, founder of Cardano, misused access to move 318 million ADA (worth $619 million at the time) during the 2021 Allegra hard fork.
According to Alexander, Hoskinson used the Move Instantaneous Rewards system to transfer unclaimed tokens from Cardano’s 2017 ICO to wallets allegedly controlled by him or Input Output Global (IOG).
He also criticized the lack of transparency, pointing out that Intersect, Cardano’s governance body, received only a fraction—around $7 million—while the rest remains unaccounted for. Alexander compared the event to the Ethereum DAO hack in 2016, arguing that Cardano lacks the same level of community oversight.
🔍 Hoskinson Denies the Allegations
Charles Hoskinson has strongly denied the claims, calling them false and damaging. He stated that over 99.8% of ADA from the 2017 ICO was properly distributed, and the remaining 18–24 million ADA were later donated to Intersect.
The transaction in question, dated October 2021, was part of an automated process to prevent old, unclaimed tokens from becoming unusable, according to Hoskinson. He also pledged that the Cardano Foundation will release a full audit of the token movements to clarify the matter.
Following backlash from the community, Hoskinson admitted he was deeply hurt by the reaction and is considering stepping back from social media altogether.
📉 Technical Indicators: 100-Day EMA Could Decide the Trend
From a technical standpoint, ADA is facing short-term resistance at the 10-day and 20-day moving averages, indicating ongoing selling pressure. Meanwhile, longer-term averages (30, 50, 100, and 200 days) continue to reflect an upward trend.
🔹 The 100-day EMA at $0.73 remains a critical level of support. If ADA can hold above it, the price may climb toward $0.76 and potentially $0.78.
🔹 If support fails, ADA risks falling below $0.72, with possible declines to $0.70 or even $0.68.
⚖️ Market Awaits Catalyst
With both sides of the controversy holding their ground, the market now awaits the results of the promised audit, which could serve as the deciding factor. Until then, the outlook for ADA remains neutral and uncertain, with investors treading carefully.
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