Cardano Whales Buy 80M ADA Amid Drop, Hoskinson Debunks Allegations

• Whale wallets added over 80 million ADA during the price drop.
• ADA faces strong resistance between the $0.78 and $0.90 range.

Cardano (ADA) has seen an influx of whale accumulation amid a falling price trend. According to analyst Ali Martinez, data from Santiment shows that whales acquired more than 80 million ADA between May 15 and May 17. 

Holding between 1 million and 10 million ADA, these addresses increased their balances while ADA dropped below $0.45. The chart highlights the accumulation trend as the shaded whale wallet region expands.

Martinez noted that this accumulation occurred while the ADA trended downward, suggesting confidence among large investors. This divergence between price movement and whale activity may signal strategic positioning for a future rebound. 

ADA Faces Technical Challenges in the Descending Channel

Cardano remains locked within a descending channel, according to the latest TradingView data. The token’s attempt to break above $0.80 was rejected at the upper trendline. This resistance, tested multiple times since December 2023, has consistently capped ADA’s upward momentum.

The chart shows red arrows marking repeated rejection points, emphasizing failed breakout attempts. A recent bullish leg in early May could not push ADA above $0.85. Instead, the price stalled in a tight range, struggling below a resistance block between $0.78 and $0.90.

Support currently lies at $0.55, with a lower boundary near $0.38 aligning with the channel’s base. Unless ADA breaks above $0.90, analysts suggest it may remain range-bound or revisit lower levels. A confirmed breakout would indicate a shift in trend structure.

Cardano Founder Addresses Hard Fork Accusations

Controversy resurfaced this week following allegations by NFT artist Masato Alexander concerning the 2021 Allegra hard fork. Alexander claimed that 318 million ADA were secretly redirected into reserve funds, allegedly generating 25 million ADA in staking rewards for the Cardano team.

He further stated that the network deleted initial voucher records and failed to reissue the tokens.

In response, Cardano founder Charles Hoskinson denied the claims. He clarified that the affected vouchers became unspendable after the upgrade and were held in a custodial account linked to the Token Generation Event (TGE).

According to Hoskinson, redemption under the TGE continued for three more years, with most initial coin offering (ICO) participants receiving their allocations.

Hoskinson also confirmed that legal steps are being taken to address the allegations. An externally audited report is being processed to verify the full redemption history. The report will provide a complete breakdown of ADA’s early distribution.