Earlier this week, Cardano successfully thwarted a spam attack, with its founder Charles Hoskinson expressing satisfaction with the outcome.
Hoskinson shared a cheerful GIF in response to a commentator describing the incident:
“A hacker tries to perform a DDoS attack against Cardano and the chain just slows down. Nothing else happens, and the scammer ends up with his ADA stolen from him?”
https://t.co/cxNveyOLDd
pic.twitter.com/VuibaSPw67
– Charles Hoskinson (@IOHK_Charles) June 26, 2024
Nick, host of the Cheeky Crypto channel on YouTube, discussed the consequences of the event for Cardano’s native cryptocurrency – ADA. He noted a 62% increase in Cardano trading volume following the attack, with ADA reaching a critical price zone. This surge implies growing interest and trust in the network.
However, Nick warned of potential market reactions, highlighting that ADA had found significant support at $0.38 after an 8.8% decline the previous week. He identified this price as historically significant, as Binance listed the altcoin back in 2018.
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Using the daily chart of ADA/USDT, Nick analyzed ADA’s price action, forecasting potential developments in the medium term. He pointed out that ADA faces resistance within the trading pattern, which could lead to further decline towards the $0.338 area. Nevertheless, he acknowledged the potential for an upward breakthrough.
To negate the downtrend, Nick stated that ADA must climb above $0.4406, pushing its price above the 50 EMA and 50 SMA indicators, indicating a trend reversal. However, he maintained a bearish perspective on ADA in the longer term.
The daily RSI indicator shared by Nick showed that ADA is in overbought territory, signaling a sustained bearish momentum.
