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Can ADA Surge 23% After Burning 1.5 Billion Coins?

In This Post:

  1. Cardano (ADA) price is falling within a pattern called a falling wedge.
  2. A proposal to burn 1.5 billion ADA coins is under discussion.
  3. If approved, this burn could significantly impact ADA’s price.

Cardano’s Price Issues

Cardano (ADA) has been having trouble with its price. Right now, it’s moving within a pattern known as a falling wedge. This pattern usually means that the price could go up eventually. However, ADA’s price has been going down instead.

Even though Cardano has made some upgrades and improved its network, the price of ADA hasn’t gone up much. The whole cryptocurrency market is also very unstable. This makes it harder for ADA to get out of its downward trend.

Proposal to Burn 1.5 Billion ADA

There’s a new proposal that might help ADA. The idea is to burn 1.5 billion ADA coins from the treasury. Burning coins means taking them out of circulation, so there are fewer coins available. This could make each remaining coin more valuable. Big Pey, a Cardano supporter, has suggested that the community vote on this idea. If the community agrees, it could help increase the price of ADA.

However, not everyone agrees with this plan. Some people think burning 1.5 billion ADA, which is only about 3.3% of the total supply, might not have a big effect. Others believe it might be better to lock away a large portion of the supply instead of burning it.

Charles Hoskinson, the founder of Cardano, has also commented on Bitcoin. He suggested that Bitcoin might be better used on networks like Cardano. But this hasn’t had much effect on ADA’s price so far.

Current ADA Price Movements

Right now, ADA is trading at about $0.322. This is a 2.1% drop over the last day and a 6% drop over the past month. The entire cryptocurrency market has been unstable, especially with Bitcoin falling below $57,000.

ADA is in a falling wedge pattern. The support level is around $0.30, and the resistance level is about $0.34. This pattern often means the price might go up in the future. But if there’s too much selling pressure, ADA might drop further.

If ADA breaks out of this falling wedge and starts going up, it could rise by 23% to reach around $0.40. On the way up, ADA might face resistance at $0.35 and $0.37.

Looking Forward

The future price of ADA will depend a lot on whether the proposal to burn 1.5 billion coins is accepted. If the proposal goes through, it could have a big impact on ADA’s price. But the overall market conditions and how investors react will also play a big role. Cardano is a risky investment right now. Investors should watch for updates on the proposal and keep an eye on market trends. Both of these factors could influence ADA’s price in the near future.

In summary, burning 1.5 billion ADA coins could lead to a price boost, but Cardano is facing a challenging market. The outcome of the proposal and overall market conditions will be crucial in deciding ADA’s future price.