Cardano: Why it was the right choice for ADA to keep this exchange at bay

  • Charles Hoskinson justified his decision to decline Gemini’s bid for ADA listing
  • ADA faced further declines during the ongoing crypto winter

In the Twitter space, interact with Cardano [ADA] The community, its founder Charles Hoskinson noted that rejecting Gemini’s offer to list the token was the right choice. The exchange initially requested that the ADA be on its platform, which Hoskinson politely refused.

Read Cardanos [ADA] predict the price 2023-2024

This happened amid rumors that Gemini would follow in FTX’s footsteps with bankruptcy talks. On December 3, A.J This was reported by the Financial Times that Genesis borrowed Gemini customers’ money to the tune of $900 million, and was unable to repay it.

This was after Gemini held back withdrawals for hours, sparking fears of a potential meltdown. The report stated,

Genesis is the lead partner in the Gemini “earn” program, where private investors lend their coins in return for a steady stream of returns. Gemini halted withdrawals from the system last month after Genesis said “unprecedented market turmoil” meant it did not have sufficient liquidity. To cover all refund requests.

Change may not be imminent

For Hoskinson, this was the final straw for avoiding cooperation. Although Gemini is back in full force proces Despite struggling with a $485 million bank run, the Cardano founder has maintained his previous stance.

Meanwhile, ADA managed to record a 77% increase in volume. Although this happened between December 25 and 26, CoinMarketCap Show that the token cannot follow a large price increase.

For ADA price, the daily time frame is implying a downward movement. This was because the Directional Motion Index (DMI) supports the game of horse indicated by -DMI (red).

On December 26, the DMI trended higher, at 31.90. In contrast, +DMI favored fading into deficit at 13.09.

Source: TradingView

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Moreover, the Average Directional Index (ADX) indicated a downtrend consolidation. At the time of writing, the ADX (in yellow) is at 41.87, shining above 25 indicating a strong move. Also, the Moving Average Convergence Divergence (MACD) indicator suggested a preference for red because it was lower than the histogram.

Investors, it’s a long way from here

When assessing the state of the on-chain ADA, it showed it could be a long journey for investors. This depends on the situation prover Through the ratio between market value and realized value (MVRV). At the time of writing, the 30-day MVRV is -13.57%.

While that was some relief from the Dec. 19 value, ADA was still a long way from making gains for its holders. The Z-Score also had a similar showing, at -1.28. One explanation was that ADA was undervalued but there was no indication that a buildup was about to start.

Cardano's MVRV MVRV z-Score ratio

Source: feeling

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