Eric Balchunas, a senior ETF analyst at Bloomberg, expressed worries about Cardano's future in a recent post on X. He believes that Cardano is not living up to the high standards set by its founder Charles Hoskinson. Hoskinson has previously made audacious predictions such as that Cardano would eventually surpass Bitcoin and turn into a vital government infrastructure.

However, given Cardano's current course, as Balchunas points out, these claims seem implausible, which makes many wonder if Hoskinson himself believes what he is saying. Once a powerful top-10 cryptocurrency with limitless potential, Cardano has found it difficult to compete with more recent and active blockchain rivals. In the past, Ethereum and ADA were regarded as strong competitors in the Layer 1 race.

ADA/USDT Chart by TradingView

But now, Solana and Ethereum are leading, especially in meme coin ecosystems and decentralized finance (DeFi). For the launch of decentralized applications, Solana in particular has drawn attention, something Cardano has not been able to do on a large scale.

The belief that Hoskinson has abandoned Cardano and seems to have cut ties with the project is one of its main problems. The combination of this impression and poor price performance has caused investor confidence to decline. The fact that ADA is having difficulty breaking out of its current resistance levels is reflected in its price action.

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The volume is declining, suggesting that the downtrend may continue, and the 50 EMA, which is at about $0.34, serves as a significant barrier. The fact that the 200 EMA is higher than the 50 EMA highlights even more the difficulties for ADA and shows its current weakness.

Cardano's future is still unclear, unless it can regain the creativity and enthusiasm that initially helped it rise to the top of the cryptocurrency market. Given the advancements being made by more recent rivals like Solana and Ethereum, ADA may remain viewed as a shadow of its past glory.