Why Charles Hoskinson believes that despite ADA price drop Cardano is not dead

Bijie.com reports:
Charles Hoskinson, co-founder of Cardano, defended ADA and opposed the “death” label. Despite the support, ADA continues to decline, with a lingering market pessimism.
Charles Hoskinson, co-founder of Cardano [ADA], recently found himself engaged in a heated exchange with cryptocurrency analyst Ben Armstrong. It started when Armstrong claimed that Cardano was dead.
In a YouTube video, he claimed that ADA was really dead and added that this time it was different, investors should not watch their investments take a hit.
He continued this discussion on his own X (formerly Twitter) page, which drew strong opposition from other analysts and ADA holders.
Armstrong believes,
“Recently, I said $DOT and $ADA are dead for institutions. This will ultimately lead to the death of them as legitimate investments. That doesn’t mean they won’t provide returns to investors in this bull market. They will. Just mediocre returns.”
This statement has garnered widespread attention, with many players holding opposing views, while others criticized his analysis of ADA’s prospects.
Another cryptocurrency analyst, Dave, responded to Ben by saying,
“But that’s just your opinion, and I doubt if it has any value now. I don’t see you presenting any technical facts to explain why you think so. It’s crazy that you think institutions don’t care about 6.9 years of normal operation.”
In addition to other analysts, one notable figure criticizing these statements is Charles Hoskinson, co-founder of Cardano.
On his official X page, Hoskinson claimed that Armstrong’s position is flawed and contradicts the fundamental principles of cryptocurrency.
“I remember the purpose of cryptocurrency is to replace institutions, not perform a scene of salvation. I guess I have to learn the banjo to make Ben happy.”
In the end, most investors and ADA holders agree that the creation of cryptocurrency is not meant to beg for institutional investment. Cryptocurrency aims to decentralize the financial market, and it belongs to the people.
What do the price charts show?
However, what does the price chart show about the current trend of ADA?
It is worth noting that AMBCypto’s analysis shows that ADA is currently experiencing a strong bearish trend. The MACD line has also crossed below the signal line, confirming the bearish trend with strength.
Similarly, as the positive index (14) is lower than the negative index (27), the Directional Movement Index further indicates a continued downward trend.
Furthermore, the RSI at 29 is below 30, which is the oversold zone, indicating extreme selling pressure on ADA.
Although oversold precedes trend reversal, altcoins may stay in the oversold zone for a long time.
Moreover, according to Coinglass data, ADA’s Ol weighted funding rate is -0.0085%. This indicates a bearish sentiment as various investors are willing to short altcoins, anticipating further decline.
Lastly, in the past 24 hours, the open interest on each exchange for ADA has decreased from $64 million to $55 million. This means a decrease in investor interest and lack of confidence in ADA.
Is your portfolio in the red? Check the ADA profit calculator
Can Cardano recover?
At the time of writing this article, ADA is trading at $0.3266 after a 17.23% decline in the past 24 hours. Additionally, it has also fallen by 15.33% in the past seven days.
If the downward trend continues, ADA will fall to a new support level of around $0.290. As oversold precedes a rebound, if a reversal occurs, it will return to the previous support level of around $0.368.