Cardano's ADA Price Surges 20% Amid Institutional Adoption Despite Fraud Allegations

Cardano (ADA) has been experiencing a bullish momentum, driven by increased adoption from institutional investors. The price of ADA has been recovering in recent weeks, similar to Bitcoin (BTC) and Ethereum (ETH). This recovery is supported by on-chain data analysis, which shows an increased capital inflow to crypto investment products due to geo-political and economic uncertainty.

However, the Cardano network is currently under scrutiny due to allegations of fraud against its founder, Charles Hoskinson. According to NFT artist Masato Alexander, Hoskinson manipulated the Cardano network during the 2021 Allegra hard fork to seize control of 318 million ADA coins. Alexander claims that Hoskinson used Genesis keys to rewrite the Cardano ledger, redirecting unclaimed tokens from the 2017 Initial Coin Offering (ICO) into Cardano’s reserves without community approval. The top Cardano team, including Hoskinson, has denied these allegations, but an on-chain investigation is expected to be conducted in the coming weeks.

Despite these allegations, the mid-term expectations for ADA price remain bullish. In the daily timeframe, ADA price has established a rising trend in the past few weeks, breaking out of a macro-falling wedge pattern in April. This trend is characterized by higher highs and higher lows, indicating a gradual gain in bullish momentum. In the four-hour time frame, ADA price has formed a falling symmetrical parallel channel, which is likely a continuation pattern. A consistent close above the upper border of the falling channel could set the precedent for a fresh rally towards the short-term target of about $1.14.

According to the analyst's forecast, the bullish momentum of ADA could potentially shrug off the fraud allegations facing Charles Hoskinson. However, the outcome of the expected on-chain investigation will be crucial in determining the long-term impact of these allegations on the Cardano network and its native token, ADA. Investors and stakeholders will be closely monitoring the situation as it unfolds.