Can ADA Burn Pump Cardano Price?

Cardano prices failed to surge with the recent implementation of full on-chain governance, as Bitcoin prices dragged the entire crypto market down

Cardano (ADA) prices failed to follow the surging trend in the crypto market on September 3, as Bitcoin (BTC) prices dragged the market down with a 2.4% loss. The rest of the crypto top 10 also traded in the red, except for XRP, which rose by 2.5%.

Meanwhile, the burning of 1.5 billion ADA in the Cardano Treasury to boost prices is already being discussed by the community. This development sparked a debate of mixed reactions among the Cardano community.

Cardano Proponent Raises Awareness About Treasury Funds, Sparks Community Discussion

Well-known Cardano supporter Big Pey has brought attention to the 1.5 billion ADA that are currently held in the Cardano Treasury, now that the community has complete control of the chain.

According to Pey, the community could decide to burn all of these ADA coins in the upcoming governance period. This suggestion has sparked a debate among Cardano enthusiasts on Twitter.

Among the responses to the post include users who advocated locking 75% of the supply rather than burning the 1.5 billion coins, which only constitute 3.3% of the entire Cardano supply. Others completely disregarded the idea of burning the coins, citing that it may only benefit short-term investors.

On the other hand, Cardano founder Charles Hoskinson made critical remarks about the future of Bitcoin, suggesting that it would be better utilized in chains like Cardano. Notably, ADA prices dropped lower despite trending within a potential bullish reversal pattern.

ADA Price Analysis: Is Breakout Still In Play?

Cardano (ADA) prices dropped by 2.4% over the last 24 hours to trade at $0.3245, which is also a 6% drop over the last month. The broader cryptocurrency market has experienced volatility following the Bitcoin price sliding below the $57,000 mark.

Despite the recent dip, Cardano remains one of the top blockchain platforms, known for its scalability, security, and energy efficiency. According to the ADA price analysis, ADA is currently in a falling wedge, with support around $0.30 and resistance around $0.34.

The market is remaining cautious as traders are waiting for a breakout with volume confirmation before buying the asset. The Chang hard fork news is still settling as people grapple with the impact of this news on the Cardano network. Should such a suggestion make it to proposal and voting, it may have a significant impact on the price of the asset.

ADA Price action approaches the end of the falling wedge, with little room to wiggle about. This means that the asset will have to pick a direction. While predominantly a bullish reversal pattern, falling wedges may break to the downside if the selling pressure is high.

Conversely, the Cardano price may break out of the wedge to the upside and surge 23% to the $0.40 price target. On its way up, ADA may encounter resistance around $0.35 and $0.37.

Overall, between the volatile Bitcoin price action and the newly upgraded network, Cardano is a hot asset to hold right now. A significant development on either of the mentioned fronts could drive ADA price up or down depending on the nature of the update. This currently makes Cardano a risky hold for most investors.

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