Cardano price moved sideways on Friday morning even as Charles Hoskinson unveiled a major proposal to help the network in the next phase of growth. ADA token was trading at $0.4250, down sharply from the August high of $1.01.
Cardano Price Drops Despite Key Proposal
ADA token price remained under pressure after a major proposal to boost its network came out. This proposal was made by Input | Output, Emurgo, Cardano Foundation, Intersect, and Midnight Foundation.
It aims at helping Cardano grow its ecosystem by addressing some of the core problems that have made it a ghost chain.
In the statement, the teams noted that budget of this proposal will be about 70 million ADA tokens. These tokens will be used to build on five key pillars.
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First, the fund will be used to improve Cardano’s stablecoin infrastructure, a move that will likely raise the amount of stablecoins in the network. Data shows that Cardano holds just $38 million in stablecoins, a tiny amount in an industry with nearly $300 billion in assets.
Cardano will secure institutional custody and wallets, improve tools for on-chain analytics, break down walls by creating infrastructure for cross-chain bridges, and create a globally recognized pricing oracles.
All these are challenges that Cardano has gone through for years. For example, Charles Hoskinson has often complained about Chainlink, which has resisted expanding to the network in the past few years. In contrast, Chainlink has already integrated with newer crypto projects like Plasma and Monad.
The new proposal came as Cardano is working on various initiatives to boost its ecosystem, with the most notable one being Midnight, the zero-knowledge sidechain that launches on December 8. Notably, ADA holders will be among the top beneficiaries of this launch because many have already claimed the NIGHT tokens, which will now become tradable.
Cardano is also working on Leios, which aims at redesigning the consensus system and boosting its scalability. It will achieve this through the concept of parallel processing, where input, endorsement, and ranking blocks will work independently. Hoskinson believes that Leios will solve the blockchain trilemma problem of scalability, security, and decentralization
ADA Price Technical Analysis
Technicals suggest that these initiatives will not boost the ADA price in the near term as bears remain in control.
It has dropped below all moving averages, and is slowly forming a bearish flag pattern. A bearish flag is made up of a vertical line and some consolidation, resulting in a breakdown.
Cardano price remains below the Supertrend and the parabolic SAR indicator, and has formed an inverse cup-and-handle pattern. All these technicals suggest that the token will likely continue falling as sellers target the key support level at $0.1.
