ADA's Price Plummets Amid Clarity, Raising Questions About True Recovery

Cardano’s native token, ADA, has fallen to $0.80 despite a recent audit clearing its founder, Charles Hoskinson, of allegations of financial misconduct. The audit, jointly conducted by Input Output Global (IOG), global law firm McDermott, Will & Schulte, and accounting firm BDO, found no evidence of wrongdoing in the ADA voucher redemption program. The report revealed that 99.7% of all tokens sold through the voucher program were successfully redeemed through on-chain redemptions and the Post-Sweep Redemption Project. Unclaimed ADA tokens were redirected to Cardano Development Holdings for grants and community initiatives, further reinforcing the legitimacy of the program.

The audit was prompted by May 2025 allegations that Hoskinson and IOG manipulated the blockchain during the 2021 Allegra hard fork, allegedly transferring $600 million worth of ADA from the reserves. NFT artist Masato Alexander claimed that Hoskinson used a “genesis key” to alter the ledger, resulting in the unredeemed tokens of original holders. The audit, however, dismissed these allegations, asserting that the voucher program was structured with multiple safeguards to prevent deceptive practices. The report also clarified that the confusion around private keys stemmed from mistranslations of Japanese terminology and that voucher holders retained valid redemption codes throughout the process.

The Cardano Foundation, a Swiss non-profit tasked with supporting the blockchain project, faced criticism from Hoskinson for its perceived inaction amid the allegations. During an X Spaces interview, Hoskinson demanded an apology and criticized the Foundation for its slow progress in integrating stablecoins and competing with rivals like Ethereum and Solana. Despite these internal tensions, the Foundation acknowledged the audit’s findings and expressed hope that the report would restore community confidence. It emphasized the importance of the audit in clearing the air and allowing the project to move forward without the cloud of unproven allegations.

While the audit has provided clarity on the voucher redemption process, the price of ADA has continued to decline. Over the past week, the token has fallen more than 5.7%, trading at $0.817 as of press time. On-chain data indicates that whale activity has contributed to the downward pressure, with wallets holding 1–10 million ADA reducing their holdings by 0.4% since August 25. Despite the technical weakness, some investors remain optimistic about ADA’s potential for a rebound. A TD Sequential buy signal near $0.82 suggests a possible reversal if the price holds above $0.80. Analysts point to key resistance levels at $0.85, $0.95, and $1.00 as critical for determining ADA’s next trajectory.

Cardano’s 90-day performance has outpaced many major altcoins, with ADA posting nearly 25% gains, according to TapTools. This consistent outperformance has drawn attention from traders and analysts alike, who view it as a sign of growing institutional and retail interest. However, the token must first overcome bearish sentiment and whale selling pressure to regain momentum. If ADA can maintain its position above $0.80 and push through the $0.85 threshold, it may signal a broader recovery. A sustained move above $0.90 could set the stage for a test of the $1.00 psychological level, a key milestone for regaining market confidence.

The audit has removed a significant overhang from the Cardano ecosystem, but the path to recovery for ADA remains uncertain. While the investigation has vindicated Hoskinson and cleared up confusion around the voucher program, the token’s price performance will depend on broader market conditions and the success of the project’s long-term roadmap. Investors and traders will be watching closely for signs of accumulation, improved DeFi integrations, and continued on-chain activity to determine if Cardano can reassert itself as a top-tier blockchain project.

Source:

[1] Cardano Internal Audit Reveals No Misconduct, Confirms 99.7 ... (https://finance.yahoo.com/news/cardano-internal-audit-reveals-no-075803441.html)

[2] Cardano audit confirms 99.7% of voucher ADA redeemed ... (https://cryptobriefing.com/cardano-voucher-audit-results/)

[3] Charles Hoskinson fumes at Cardano Foundation over ... (https://finance.yahoo.com/news/charles-hoskinson-fumes-cardano-foundation-142727737.html)

[4] ADA Flashes Buy Signal as Bulls Defend $0.80 Support Zone (https://bravenewcoin.com/insights/cardano-price-prediction-ada-flashes-buy-signal-as-bulls-defend-0-80-support-zone)