Can ADA Surge 23% After Proposed 1.5 Billion Treasury Burn?

Cardano price has struggled to gain momentum despite recent network upgrades and full on-chain governance implementation. As the community debates the potential burning of 1.5 billion ADA from the Treasury, many are wondering if this move could trigger a 23% price surge. With the broader crypto market facing volatility, could a Treasury burn provide the boost ADA needs to break out of its current downtrend?

Can ADA Burn Pump Cardano Price?

Cardano proponent Big Pey suggested that the Cardano community, which is now in full control of the chain, could initiate a vote to burn all of the 1.5 billion ADA in the Treasury. 

Among the responses to the post include users who advocated locking 75% of the supply rather than burning the 1.5 billion coins, which only constitute 3.3% of the entire Cardano supply. 

Others completely disregarded the idea of burning the coins, citing that it may only benefit short-term investors. 

Meanwhile, Cardano founder Charles Hoskinson made critical remarks about the future of Bitcoin, suggesting that it would be better utilized in chains like Cardano. 

ADA price consistently dropped lower despite trending inside a potential bullish reversal pattern.

ADA Price Analysis: Is Breakout Still In Play?

Cardano price dropped by 2.1% over the last 24 hours to trade at $0.322, which is also a 6% drop over the last month. The broader cryptocurrency market has experienced volatility following the Bitcoin price sliding below the $57,000 mark. Despite the recent dip, Cardano remains one of the top blockchain platforms, known for its scalability, security, and energy efficiency.

According to the Cardano price analysis, ADA is currently in a falling wedge, with support around $0.30 and resistance around $0.34. The market remains cautious as traders wait for a breakout with volume confirmation before buying the asset. 

The Chang hard fork news is still settling as people grapple with the impact of this news on the Cardano network. Should such a suggestion make it to proposal and voting, it may have a significant impact on the price of the asset.

ADA Price action approaches the end of the falling wedge, with little room to wiggle about. This means that the asset will have to pick a direction. While predominantly a bullish reversal pattern, falling wedges may break to the downside if the selling pressure is high. 

Conversely, the Cardano price may break out of the wedge to the upside and surge 23% to the $0.40 price target. On its way up, ADA may encounter resistance around $0.35 and $0.37.

Overall, between the volatile Bitcoin price action and the newly upgraded network, Cardano is a hot asset to hold right now. A significant development on either of the mentioned fronts could drive ADA price up or down depending on the nature of the update. This currently makes Cardano a risky hold for most investors.

Related Articles

• Crypto Hack: North Korean Hackers Target Crypto Market, Bitcoin ETF Issuers At Risk?
• Breaking: Nvidia Slips 10% As US DOJ Escalates Antitrust Probe With Subpoena
• Is Coinbase Planning To Back Kamala Harris? CLO Paul Grewal Shares Hint