Cardano (ADA) has become the topic of discussion on social media after co-founder of Cardano Charles Hoskinson announced that he was taking a break from being involved in the ecosystem. Following this announcement, the price of the ADA token crashed to December 2020 levels.
After the co-founder left a message on X, the crypto community started to talk about this event. Hoskinson’s last few words before his break erupted into gossip. Hoskinson in particular stated that the Cardano ecosystem may face a “wave of failures” following project shutdowns and funding challenges.
Meanwhile, Hoskinson’s post had some ridiculous comments. Some showed their love to the cofounder and the project, while others ridiculed his emotional tantrums.
On-chain activity and social spiked after the announcement
Both the on-chain activity and social attention spiked to historically high levels as the masses reacted to this shocking news. As per the chart above, $ADA reached a 2026 high of approximately 0.52% social dominance, meaning more than one out of every 190 crypto-related discussions across social media has been focused on Cardano.
Meanwhile, the on-chain activity skyrocketed, and the daily active addresses surged to 28,459, the highest level in four months, indicating that users were actively interacting with the network as the major volatility created polarization (mainly bearishness) among traders.
ADA might suffer in market already grappling fear
With the overall crypto market going through extreme fear, the next few weeks for Cardano will be challenging. The above chart shows that the market is in a state of extreme fear. During treacherous times like these, the retailers go dormant, and even the risk takers practice a risk-averse stance. With such an outlook, institutions will have the power to set ADA prices.
Crypto market grapples fear but ADA community ready to buy
Looking at the prices of ADA, we see that the token has lost a major support level at $0.24. Now that ADA has crashed below 20 cents—2020 December levels—some traders might see this as an opportunity to acquire ADA at a discounted price.
Even the relative strength index, which gauges if the prices are oversold or overbought, shows that ADA is currently oversold. This means the token is undervalued, and usually, the market corrects the prices when this happens. Given that the buyer steps into and buys ADA at these low levels, the coming days could relatively turn out to be good for the token.
