Cardano ADA’s ’Ghost Chain’ Claims Amid 37% Breakout Setup
Cardano ADA faces renewed scrutiny after on-chain metrics show a decline in transaction counts and user activity, prompting “ghost chain” claims. Founder Charles Hoskinson defended ADA’s exclusion from a U.S. government data pilot—citing Chainlink’s high fees—and highlighted Cardano’s peer-reviewed design and scalability edge over Ethereum. Technically, ADA has formed a bullish flag on the 4-hour chart, setting up a potential 37% breakout toward $1.12 if price surpasses the $0.87 flag resistance and 50-period EMA at $0.84. Indicators support early bullish momentum: a MACD crossover and a neutral RSI near 47, suggesting room for upside. Combined with recent protocol upgrades and growing institutional interest, these factors may drive a short-term rally despite lingering adoption concerns.
Bullish
Despite concerns over declining on-chain engagement labeled as ’ghost chain’ claims, Cardano ADA’s technical setup suggests a bullish outlook. The formation of a classic bullish flag on the 4-hour chart, combined with a breakout above $0.87 resistance and the 50-period EMA at $0.84, aligns with a measured move of approximately 37% toward $1.12. Historical precedents in crypto markets show that flag patterns often precede strong upward movements, as seen in past Bitcoin and Ethereum rallies. Additionally, the MACD crossover from negative territory and a neutral RSI around 47 indicate that bullish momentum is building without overextension. On the fundamental side, recent protocol upgrades, growing institutional interest, and Charles Hoskinson’s defense of ADA’s design reinforce confidence in Cardano’s roadmap. Although long-term adoption metrics remain a challenge, the confluence of technical signals and renewed market attention supports a short-term bullish bias. Traders may view this as an opportunity to enter positions ahead of a potential breakout, while monitoring volume and on-chain activity for confirmation.