The Cardano Foundation’s X account was breached on December 8, leading to a significant impact on the ADA token. Fraudulent activities were carried out by hackers, who leveraged the account to spread misinformation and promote scams.
Hackers Exploit Cardano’s X Account
The hacking incident resulted in the promotion of a scam Solana-based token named ADA/SOL. Hackers utilized trusted sources, such as a recent podcast and the Foundation’s official website, to lend credibility to their fraudulent activities.
The false promotion generated about $500,000 in trading volume for the counterfeit token before the scam was exposed. Once identified, the token’s value crashed by 99%.
Additionally, the hackers falsely claimed that support for ADA would be halted due to an SEC lawsuit and that ADA withdrawals were suspended. These fabricated updates amplified investor concerns, shaking confidence in Cardano’s ecosystem.
The ongoing compromise of the Cardano Foundation’s X account has raised questions about the blockchain’s security and its ability to maintain price stability. Months of positive sentiment toward Cardano have been overshadowed by uncertainty and fear.
ADA Shows Bearish Momentum
The hack has led to a bearish sentiment surrounding ADA, with its price dropping by 4.5% on the daily chart. At the time of writing, ADA trades at $1.15, reflecting growing concerns among investors.
Technical indicators highlight a downward shift in ADA’s momentum. The Moving Average Convergence Divergence (MACD) indicator shows a bearish crossover, with the MACD line falling below the signal line. This development suggests potential near-term declines in ADA’s price.
Weak trading volumes and a lack of bullish signals further exacerbate the bearish outlook. ADA would need a significant resurgence in momentum to challenge its resistance levels.
Key Resistance and Support Levels for ADA
To regain a bullish trajectory, ADA must overcome the resistance at $1.20. Successfully flipping this level could pave the way toward $1.32. However, this would require robust trading volumes and improved market sentiment.
On the downside, ADA risks falling to the vital support level at $1.01 if bearish dominance continues. A rebound from this level could keep ADA’s price within a narrow range, influenced by lingering concerns over the hacking incident.
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A breakout above $1.32 with substantial volumes could invalidate the bearish narrative and renew interest in ADA, attracting more buyers to the Cardano ecosystem.
Whales and Q4 Performance Offer Optimism
Despite the recent challenges, ADA’s impressive 160% monthly surge in Q4 has sparked optimism. Whales continue to accumulate ADA, signaling confidence in the token’s long-term potential.
Community members are closely monitoring the situation, as delayed recovery of the compromised X account could magnify bearish sentiments. However, comments from Cardano founder Charles Hoskinson have helped reinforce faith in the blockchain’s resilience.
As the developments unfold, the market’s reaction will likely shape ADA’s near-term trajectory. Investors remain hopeful for a swift resolution and recovery in Cardano’s ecosystem.
