The Cardano (ADA)-based decentralized finance (DeFi) and stablecoin ecosystem Ardana unexpectedly stopped development on November 24th due to financing and schedule concerns.
Whereas due to this, ADA saw a volatile start to the day on November 24th, rising to an early high of $0.321 before dropping to a low of $0.312, with the token presently trading at $0.316 as of this writing, as per CoinMarketcap’s data.
The project will continue to be open-source for developers. Ardana Labs will hold onto any remaining cash and treasury balances until another capable development team from the community steps forward to take over.
Due to the significant amount of capital invested in infrastructure, security, and tools, Cardano development has been difficult. Given this and the uncertainties surrounding its completion, the best step is to halt dUSD development.
Many were surprised by the move because the news came so suddenly. Problems, though, seem to have existed for a while. Initial stake pool offerings, or ISPOs, have been continuously hosted by Ardana since July 4th in order to finance its activities.
Developers receive the staking rewards rather than the ADA that users have assigned, in contrast to typical fundraising methods. Receiving the native DANA coins as payment encourages users to continue delegating.
The current crypto winter has consequently resulted in decreased Cardano staking income, a price drop of DANA and ADA, and problems for ISPO issuers. DANA tokens, which are local to Ardana, have nearly lost all of their value during the past year.
Ardana asserted in January that the development of the product and smart contract was nearly complete. They could have launched our goods in a matter of weeks if they had chosen to, but instead, they attributed the delay to the Cardano network’s liquidation difficulties and danger to users’ funds. Most people had bad reactions and blamed Ardana.
Cardano (ADA) Price Review
The FOMC meeting minutes from November 23rd gave the crypto market as a whole a boost as members discussed reducing the rate rise path in the US. However, ADA was unable to take advantage of this market pump for long-lasting upward momentum.
Bears still seem to be in charge of ADA’s price movement after an unsuccessful effort to break the $0.378 level on November 22nd. A subsequent decline would not be unexpected as long as the price remains below $0.378.
It would likely target the $0.285 support region and, if the overall crypto and risk asset bear market persists – not to mention the dangers posed by the ongoing FTX saga – could even dip as low as $0.231 in the near future.
But by examining the stochastic RSIs, which suggest some potential upward momentum, it is easy to make the short-term bullish argument for ADA.
If Cardano is able to retake the $0.378 and, more crucially, the $0.43 level, a bullish situation may be in the offing. Should that occur, ADA/USD may increase by 50% by year’s end as market sentiment turns back in favor of a scenario that is favorable for ADA.