Cardano was in a tight range at a crucial support level after Charles Hoskinson made a case for the network and its token.
Cardano (ADA) was trading at $0.80, down by over 40% from its highest level in December last year.
The coin wavered after Hoskinson, its founder, blasted Ethereum and Solana in a long YouTube interview. In it, he noted that its biggest differentiating factor was that it was working on integrating with Bitcoin — a move that he believes is an unexplored $2 trillion opportunity. He said:
“Somebody is going to crack it. We will work on it hard as we aim to be the Decentralized Finance or DeFi layer of the Bitcoin network. I don’t think it Ethereum (ETH) and Solana (SOL) have what it takes to achieve this.”
Hoskinson’s interview came a few months after Cardano announced a partnership with BitcoinOS. This integration is expected to be activated in the next few months.
Cardano is not the first blockchain to create a Bitcoin layer. Core, a layer-2 for Bitcoin’s ecosystem, has attracted 53 developers and a total value locked of $626 million. Stacks (STX) has 12 dApps and $104 million in assets.
Hoskinson also criticized Ethereum for promoting layer-2 networks, which have taken its users. L2 networks like Base, Arbitrum, and Optimism have become key players in the Ethereum network, handling transactions worth billions of dollars. These L2 networks are popular because of their lower transaction fees and the fact that they leverage Ethereum’s security.
He also blasted Solana, a highly popular Cardano competitor, arguing that it cannot survive, especially when data moved in its ecosystem surges.
Hoskinson’s interview came a week ahead of his so-called VIP meeting. Crypto analysts anticipate it will be X owner Elon Musk.
Cardano price forecast
The weekly chart shows that ADA price peaked at $1.32 in November last year and then retreated. Its upper side was a crucial level since it coincided with the 38.2% Fibonacci Retracement level.
Cardano then retreated to $0.524 as it moved to form the second phase of the Elliot Wave pattern. This phase is usually followed by the third one, which is usually bullish and the longest.
Cardano remains above the 50-week moving average, a sign that bulls are in control. Therefore, the coin will likely bounce back as bulls target last year’s high of $1.32, up by 70% from the current level.
