In recent years, the price of Cardano (ADA) has not always reacted positively to Charles Hoskinson’s negative comments about Bitcoin (BTC).
ADA Price Drops 75% After Hoskinson Criticizes BTC
What’s notable is that in the nearly two years since Hoskinson questioned Bitcoin’s viability in his interview with Cointelegraph, the ADA/BTC trading pair has fallen by 75%.
In an October 2022 conversation, Hoskinson argued that BTC should not be used on the Bitcoin blockchain network, but should be used as a wrapped asset on a faster blockchain like Cardano or Ethereum.
At that time, ADA/BTC was trading at a high of 2,188 satoshis (1 satoshi is 0.00000001 BTC). However, as of September 3, the pair has fallen to a low of 562 satoshis, coming close to its lowest level since December 2020.
ADA/BTC Weekly Price Chart. Source: TradingView
ADA/BTC’s negative reaction to Hoskinson’s Bitcoin criticism is part of a consistent pattern. In most cases, his comments have led to a short- to medium-term decline in ADA/BTC.
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This was also the case after Hoskinson criticized Bitcoin in June 2021 when he likened it to a “useless football star,” compared Bitcoin to religion in April 2024, claimed “the industry no longer needs Bitcoin” in May 2024, and claimed Cardano would outperform Bitcoin in June 2024.
ADA/BTC monthly price chart. Source: TradingView
ADA/BTC has fallen by about 94% from its all-time high in January 2018.
Has ADA Finally Hit a Bottom Against BTC?
The interim technical setup for ADA against BTC appears to be biased towards the bulls.
In particular, the ADA/BTC pair is trading in what appears to be a falling wedge setup, which traditional analysts consider a bullish reversal pattern. Typically, a falling wedge setup is resolved when the price decisively breaks the upper trendline and rises to the maximum height of the wedge.
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Applying the same principle to the ADA/BTC chart, if the breakpoint is where the trend lines of the pattern converge, the target for the falling wedge would be around 694 satoshis. This means that the pair could rally by around 25% by the end of 2024.
ADA/BTC daily price chart. Source: TradingView
However, on long-term charts, a bounce does not necessarily indicate an ADA/BTC bottom.
ADA/BTC 6-week performance chart. Source: TradingView
In particular, the pair broke below its lifetime uptrend support line shortly after Hoskinson said in May 2024 that “the industry no longer needs Bitcoin,” and has been in a steady decline since then.
A further decline could see ADA test the 1.0 Fibonacci correction level around 413 satoshis as its next downside target in 2025, which would be a decline of around 25% from the current price.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.