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Cardano (ADA) Price Tumble Following FTX Plans to List the Cryptocurrency

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VOC, Voice of Crypto, Cardano, ADA

Key Insights

  • The CEO of FTX, Sam Bankman-Fried (SBF), announced that the crypto exchange was planning to list Cardano (ADA).
  • Several Cardano fans reacted negatively to SBF’s tweet concerning the FTX-Cardano Listing.
  • A listing on FTX might be beneficial for the cryptocurrency.

According to a tweet, the CEO of FTX, Sam Bankman-Fried (SBF), announced that the crypto exchange was planning to list Cardano (ADA).

However, contrary to expectations, ADA’s price failed to rise.

In summary, the FTX announcement had the opposite effect on Cardano’s price action because, in the same tweet, the FTX CEO referred to Cardano as a “new blockchain” that needs time to “implement.”

As expected, Cardano fans did not take the remark too kindly.

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As pointed out by many, calling Cardano a “new blockchain” is a surprisingly bold statement, considering how Cardano has been around for about five years now and is even older than the mainstream crypto market.

The following decline in ADA brought the cryptocurrency below the $0.4 mark it had only managed to beat the previous week.

Other cryptocurrency fans also ridiculed the FTX CEO for calling Cardano a “new blockchain,” eliciting further clarification from SBF that he only meant Cardano was a new blockchain because FTX had “only just begun using the blockchain.”

FTX Listing Good For Cardano?

Several Cardano fans reacted negatively to SBF’s tweet concerning the FTX-Cardano Listing, with one of them even challenging why FTX immediately lists some cryptos on launch (like Aptos last month) but continues to drag their feet when it comes to listing ADA.

“This doesn’t show what your (FTX’s) priorities are,” the Twitter user said in their response tweet. “It also shows what you fear.”

The tweet further mentions that listing only cryptocurrencies the exchange is personally interested in should be a huge red flag.

Charles Hoskinson, the co-founder of Cardano, chipped in a while later with a nodding GIF to show his approval when SBF clarified that FTX was indeed working on Cardano.

A listing on FTX may benefit the cryptocurrency because, according to recent highlights from the crypto analytics platform, Santiment, ADA is substantially undervalued based on its MVRV-Z-Score. Since August 2021, the price of ADA has also been declining rapidly.

Although it is still uncertain whether FTX will finally commit to introducing support for ADA spot trading, this listing may be within the next three months based on SBF’s comments.

Such a big development might boost ADA in terms of price and mainstream adoption.

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Cardano (ADA) Price Outlook 

October was nice to Cardano, not in terms of price but on-chain data. The Cardano foundation also noted this fact via their Twitter handle. The Cardano network experienced 53.3 million transactions in October alone, with this metric being a 4.18% increase from what it was in August.

The total number of addresses on the network also increased by about 1.02% from the previous month to about 3.63 million addresses.

In terms of price action, Cardano has been bearish over the long and medium terms.

Chart showing descending triangle and multi-month price decline, ADA, VOC, Voice of crypto

Chart showing descending triangle and multi-month price decline | Source: Tradingview

As of early August, the price action of Cardano has formed a descending triangle and has been in a steep decline ever since.

Since hitting the multi-month bottom around $0.33, the cryptocurrency has begun to trend upwards and hit the upper resistance of its descending triangle.

Coincidentally, the rise in the price of ADA has been met by the $0.4 resistance that held the price of the cryptocurrency up since May but was eventually broken in early October. This resistance line also coincides with the top of the descending triangle.

Overall, breaking through $0.4 is an important step for the cryptocurrency if it hopes to reclaim the next support level around $0.6.

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Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Jim Haastrup is a freelance blockchain and metaverse writer. He helps founders, investors, startups, crypto, and blockchain enthusiasts connect with their audience and win investment through the written word.

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