Charles Hoskinson claims Leios upgrade will make Cardano faster than Solana.
ADA price drops 1% despite upgrade news, with declining trading volume.
Technical analysis suggests potential 12% drop to $0.27 if $0.31 support breaks.
Cardano founder Charles Hoskinson has stirred the cryptocurrency community with a bold assertion regarding the network’s forthcoming Leios upgrade. Hoskinson contends that this enhancement will catapult Cardano’s transaction speed beyond that of its rival, Solana.
However, despite the founder’s optimistic outlook, ADA’s market performance has remained subdued, with the token experiencing a price decline and a drop in trading volume over the past 24 hours.
The Ouroboros Leios upgrade represents Cardano’s most significant technological advancement since the Chang hard fork implementation in early September.
Developers promise tiered transaction fees and accelerated chain synchronization, features that Hoskinson believes will position Cardano as a frontrunner in the competitive “Ethereum killer” landscape.
Cardano’s price action has been lackluster
Despite the founder’s bullish rhetoric, Cardano’s price action has been lackluster. Trading at $0.34, ADA has failed to garner major buying interest, with its trading volume contracting by 10% in the last day. This muted response suggests a disconnect between technological advancements and immediate market sentiment.
On-chain metrics further corroborate the tepid demand for ADA. The negative price daily active address (DAA) divergence, a key indicator measuring price movements against changes in daily active addresses, has consistently posted negative values since September 8. This trend highlights a nine-day downward trajectory in buying activity, despite the buzz surrounding the Leios upgrade.
Source: Santiment
Sentiment analysis paints an equally bearish picture, with ADA’s weighted sentiment registering -0.20 at press time. This negative reading indicates a prevalence of fear, uncertainty, and doubt in social media discussions, often a harbinger of sustained price downtrends.
From a technical perspective, Cardano’s price chart reveals a descending triangle pattern formation since July 15, typically considered a bearish indicator.
With ADA’s price hovering precariously close to the critical $0.31 support level, the potential for a significant downside move looms large. A breach of this support could trigger a 12% decline, potentially driving ADA to its August 5 low of $0.27.
