Cardano ADA Shows Resilience Amid Founder Controversy, Holds Key Support at $0.74

Despite facing allegations against its founder Charles Hoskinson, Cardano’s ADA token has demonstrated notable resilience by maintaining a crucial support level at $0.74. While the token experienced a 5.6% weekly decline, it managed a 1.4% gain in the last 24 hours, suggesting institutional adoption may be countering negative sentiment. Hoskinson has denied claims of misappropriating 318 million ADA ($619 million) during the 2021 Allegra hard fork and has committed to addressing the allegations fully.

Cardano (ADA) Weathers Founder Controversy as Price Holds Key Support

Cardano’s ADA demonstrates resilience amid allegations against founder Charles Hoskinson, maintaining a $0.74 support level despite 5.6% weekly decline. The token gained 1.4% in 24 hours as institutional adoption appears to offset negative sentiment.

Hoskinson faces claims of misappropriating 318 million ADA ($619 million) during the 2021 Allegra hard fork, which he vehemently denies. The founder committed to a full treasury audit to address concerns from NFT artist Masato Alexander’s May 7 allegations.

Technical indicators suggest ADA remains in consolidation with neutral momentum, while market participants watch for potential volatility from the unfolding controversy. The token’s ability to hold key levels reflects underlying strength in its adoption narrative.

Charles Hoskinson Orders Full Audit of IOG Amid $600M ADA Misuse Allegations

Cardano founder Charles Hoskinson has mandated a comprehensive audit of Input Output Global (IOG) following serious allegations of $600 million in ADA mismanagement. The move comes as the proof-of-stake blockchain faces heightened scrutiny from both the crypto community and regulators.

Hoskinson, who co-founded both ethereum and Cardano, is positioning this audit as a transparency measure to maintain confidence in the project’s governance. The allegations strike at a critical time for Cardano, which has been gaining traction in enterprise blockchain adoption through its focus on scalability and interoperability.

Cardano Nears Key Psychological Level as Withdrawals Signal Bullish Sentiment

Cardano’s ADA surged 3% to $0.74 on May 20, fueling speculation of an imminent breach of the $1 psychological barrier. The rally coincides with nearly $1 billion in ADA withdrawals from exchanges year-to-date—a strong accumulation signal that mirrors previous pre-bull market behavior.

Market confidence appears bolstered by founder Charles Hoskinson’s commitment to an independent audit addressing fraud allegations. "When exchange balances drain this aggressively, it typically precedes major revaluations," noted a CoinGlass analyst, referencing the $932 million in ADA removed from centralized platforms since January.

Cardano Price Analysis: ADA Breakout to $1 Imminent?

Cardano’s ADA is reclaiming market attention amid developments around its Midnight sidechain and Glacier airdrop. The cryptocurrency trades at $0.7284, rebounding from a weekly low of $0.7238, with monthly gains holding at +18.58% despite recent volatility.

Notable $932 million in exchange outflows mirror accumulation patterns preceding ADA’s 2021 bull run to $3.10. Technical indicators suggest strengthening momentum as the asset tests key resistance levels on 4-hour charts.