Cardano News Today: Cardano's Chain Split Sparks Debate Over PoS Resilience

Cardano (ADA) faces a critical juncture as it seeks to reclaim its $1 liquidity zone, a threshold that could signal renewed investor confidence or further consolidation. Recent volatility, exacerbated by a high-profile chain split on Nov. 21, has left the cryptocurrency trading in a tight range, with bulls needing to break above key resistance levels to reignite momentum. The incident, triggered by a deliberately crafted transaction exploiting a long-standing bug in node software, temporarily fragmented the network into two chains, raising questions about its resilience and governance. Charles Hoskinson, Cardano's co-founder, attributed the event to a disgruntled stake-pool operator and noted the FBI's involvement in the investigation.

The chain split, though short-lived, disrupted major exchanges and DeFi protocols, with Coinbase pausing ADA operations for nearly 14 hours while validating ledger integrity. While the network converged through natural consensus within hours, the episode exposed vulnerabilities in proof-of-stake systems, particularly during untested scenarios. Experts argue that Cardano's ability to recover without centralized intervention underscores its design strengths, yet the incident has intensified scrutiny over its long-term stability.

From a technical perspective, ADA's price action remains bearish, with the cryptocurrency retreating from a $0.47 peak on Nov. 20 to a low of $0.39 by Nov. 21. The 24-hour range of $0.4065 to $0.4274 highlights a lack of directional clarity, compounded by a 10.5% and 26.1% decline over the past week and month, respectively. Analysts point to the Ichimoku Cloud as a key indicator, with the price currently below the cloud, and the Tenkan-sen ($0.59) and Kijun-sen ($0.65) forming a bearish cross. To shift momentum, ADA must break above the $0.75 cloud resistance level; failure to do so could see further declines toward $0.29 support.

The Chande Momentum Oscillator (CMO) also reflects bearish sentiment, with a reading of -75.33 indicating weak bullish traction. Despite this, Cardano's social dominance-9.6% compared to XRP's 2.9% and Solana's 1.55%-suggests a resilient community that could drive sentiment-driven rallies. However, broader market conditions remain fragile, with the Altcoin Season Index at 23, signaling a "Bitcoin Season" and limiting altcoin participation .

For ADA to test the $1 liquidity zone, it must first overcome the $0.75 hurdle and sustain gains above the cloud. A successful breakout could attract institutional buyers and rekindle interest in Cardano's ecosystem, particularly as its on-chain activity and social media engagement remain robust. Conversely, a drop below $0.29 would likely deepen the bearish narrative, potentially pushing the price toward a multi-year low.

As the crypto market awaits clarity on macroeconomic trends-including Federal Reserve policy and inflation data-Cardano's trajectory will hinge on its ability to balance technical resilience with community-driven momentum. For now, the $0.75 level remains the linchpin for bulls, with the outcome shaping ADA's prospects in the coming months.