- Cardano survived a spam attack earlier this week.
- Cardano’s trading volume surged 62% in the attack’s aftermath.
- ADA reached significant support at $0.38 after falling by over 8.8% last week.
Cardano successfully fended off a spam attack earlier this week, and the blockchain’s founder, Charles Hoskinson, expressed his satisfaction with the development. Hoskinson shared a GIF image on X showing a cheerful glee and offering thumbs up to a commentator who summarized the incident.
The commentator posted:
“A hacker attempts a DDoS attack on Cardano, and the chain just slows down. Nothing else happens, and the scammer gets ADA stolen from him??”
In a video, Cheeky Crypto YouTube channel presenter, Nick, said the event has significant implications for Cardano’s native cryptocurrency, ADA. Nick observed a 62% increase in Cardano’s trading volume in the attack’s aftermath, as ADA price reached a crucial zone. He views the surge as an indication of the growing interest and trust in Cardano.
However, the crypto analyst highlighted the potential reactions users should expect from ADA after entering the crucial zone. Nick noted ADA reached a significant support level at $0.38 after declining by over 8.8% last week. He identified the $0.38 price as a historically significant level since Binance listed ADA in 2018.
Using the daily chart on ADA/USDT, Nick analyzed ADA’s price behavior and predicted how the price could develop in the medium term.
Nick showed ADA is currently encountering resistance in a trading pattern, suggesting a further move to the downside. The move is part of a five-wave drop to the downside that could see the altcoin drop to the $0.338 region. However, Nick acknowledged the possibility of a breakout to the upside.
According to Nick, ADA needs to climb above the $0.4406 region to invalidate the continuation of a downtrend. He believes such a move would push the price above the 50 EMA and the 50 SMA indicators, further validating a trend reversal for the altcoin. However, he maintains ADA remains bearish from a longer-term perspective.
The daily RSI indicator he shared showed the crypto is in the overbought region, signaling significant bearish momentum is still in existence.
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