Cardano News Today: Cardano's ADA Dips Amid Hoskinson's X Exit and Digital Twin Takeover

Charles Hoskinson, founder of Cardano (ADA), has announced he will leave the social media platform X by January 1, 2026, with a "digital twin" taking over his account according to reports. This move comes as he shifts his public engagement to Midnight Discord for weekly AMAs and YouTube livestreams as per the announcement. Hoskinson emphasized that his departure is part of a broader strategy to focus on long-form writing and projects such as Midnight 1.0 and Cardano governance according to statements.

The timing of this departure coincides with ongoing challenges for Cardano's price, which has been under pressure for much of 2025. ADA recently fell to $0.3562, marking a 2.4% drop in the last 24 hours and a 22.9% decline over 14 days. The cryptocurrency now trades near historical lows, raising concerns about further downside risks amid weak trading volume and bearish technical indicators as analysts note.

Meanwhile, Cardano's development ecosystem is pushing forward with key upgrades. The Midnight network, designed to enhance privacy and decentralized finance (DeFi) capabilities, is set to introduce a cross-chain bridge with Solana, signaling a shift in the competitive landscape. Hoskinson has also clarified that a new token, NIGHT, will not replace ADA, but rather expand the Cardano ecosystem through privacy-focused use cases according to the founder.

Why the Standoff Happened

Hoskinson's decision to leave X has sparked mixed reactions from the community. Some supporters view it as a necessary step to reduce noise and focus on development, while critics question the implications for transparency according to community analysis. His departure from the platform, which has historically influenced ADA's price, could have psychological and market effects, especially if he is perceived as stepping back from public engagement as market participants observe. The digital twin that will take over his X account remains unexplained, adding an element of uncertainty for followers.

The timing of his exit also aligns with a broader period of instability for ADA. The token has seen sustained outflows in spot trading, with net outflows reaching $6.25 million over the past seven days. Futures open interest has also fallen sharply, from $1.72 billion in October 2025 to $651 million by December 26, reflecting reduced speculative activity. These trends suggest that market participants are adopting a cautious stance ahead of major developments.

How Markets Reacted

ADA's price decline has coincided with heightened bearish sentiment. On the 4-hour chart, it remains below key exponential moving averages, reinforcing a downward trajectory. The Supertrend indicator shows a red bearish trendline around $0.70751, and Fibonacci retracement levels are stacking as resistance above $0.382. On the downside, ADA faces immediate support near $0.355, with a potential breakdown likely to expose deeper levels near $0.346 as technical indicators suggest.

The broader DeFi landscape also reflects Cardano's challenges. Its DeFi Total Value Locked (TVL) stands at just $178 million, far below Ethereum's $69 billion and Solana's $9 billion. Hoskinson has acknowledged this gap, noting that low trading volumes on Cardano's decentralized exchanges (DEXs) are a key constraint. The Midnight upgrade aims to address these issues by enhancing liquidity and settlement assets, but success will depend on user adoption and ecosystem growth.

Risks to the Outlook

Despite recent technical hurdles, Cardano's long-term roadmap includes ambitious upgrades such as the Hydra layer-2 scaling solution and the Basho and Voltaire phases of development according to development plans. These projects aim to increase throughput, reduce fees, and enable decentralized governance. However, execution risks remain, particularly with technical delays or regulatory headwinds that could hinder adoption.

The introduction of the NIGHT token has also raised questions about market perception. While Hoskinson insists it will not compete with ADA, the token's role in privacy-focused applications could create confusion or dilution of Cardano's core narrative as analysts observe. Additionally, the Solana bridge project, while a strategic move, introduces interoperability risks and depends on Solana's ongoing success.

What This Means for Investors

For investors, the immediate outlook for ADA remains cautious. Price action below key technical levels and weak on-chain metrics suggest that downside risks persist. However, long-term investors may see potential in Cardano's roadmap and strategic partnerships, particularly in DeFi and real-world asset integration according to market analysis. The success of Midnight and the Solana bridge could provide catalysts for renewed interest in the ecosystem.

Short-term traders should monitor ADA's ability to hold key support levels and the response of spot and futures flows to any news from the development team. The digital twin takeover of Hoskinson's X account and his shift to Discord and YouTube may also affect investor sentiment, depending on how it's received.

For now, ADA remains in a consolidation phase, with technical confirmation needed to determine the next direction. Investors are advised to carefully assess risks and opportunities as Cardano works toward executing its ambitious vision in the coming months and years.