Cardano founder Charles Hoskinson faced renewed controversy this week after accusations surfaced of a large-scale ADA theft. Allegations claimed insiders siphoned off more than 300 million ADA, valued at over $600 million.
In response, Hoskinson publicly suggested dissolving the Cardano Foundation. He made the remarks during a live stream, amplifying tension across the community. The accusations remain unverified, yet they added fresh scrutiny to the network’s leadership.
Cardano Transitions to Full Community Governance
At the same time, Cardano finalized its shift to full community governance. Mintern from Minswap Labs confirmed that the Constitutional Committee handed control directly to the community. This governance milestone positioned Cardano as one of the most decentralized blockchains in operation.
On-chain activity surged alongside the transition, with seven-day activity reaching nearly $5.3 billion. Developers and community members framed the change as a decisive move in blockchain decentralization.
Grayscale Seeks Cardano ETF on NYSE Arca
Institutional exposure to Cardano took a step forward after Grayscale filed with the U.S. Securities and Exchange Commission. The asset manager requested approval to convert its existing Cardano product into a spot ETF under the ticker “GADA.”
If cleared, the product would list on NYSE Arca, creating the first dedicated Cardano ETF in the United States. The filing followed a wave of approvals for Bitcoin and Ethereum ETFs, signaling further mainstream acceptance of altcoin-backed products.
Retail sentiment around Cardano remains subdued despite governance and regulatory advances. On-chain data pointed to significant outflows from retail wallets. Analysts, however, noted that institutional behavior and technical indicators suggest a potential contrarian signal. Institutional accumulation patterns contrast with retail weakness, reinforcing Cardano’s shifting investor base. This divergence added a layer of complexity to the asset’s broader narrative.
Analyst Flags Cardano Setup Targeting Break Above $1
Crypto market analyst known as Crypto King highlighted Cardano’s potential for a significant breakout in a recent update. He argued that the ADA/USDT chart has developed a technical formation strong enough to push the token past the $1 threshold in the near term.
According to his chart analysis, Cardano has been consolidating within a rising channel, marked by parallel trendlines that guide the asset higher. This pattern, often viewed as a continuation signal, suggests ADA could extend its gains if momentum holds. Crypto King emphasized that his previous bullish call on Cardano at $0.30 proved correct, and he now expects the same conviction to apply as the price approaches critical resistance zones.
The chart he shared shows ADA trading around $0.84, with resistance levels identified near $1.20 and $1.40. A successful breakout above $1 would place Cardano within a higher range, potentially accelerating institutional and retail participation. His commentary framed the current setup as a decisive stage in ADA’s trajectory, urging traders not to ignore the opportunity.
Cardano Forms Falling Wedge Pattern With Breakout Target Toward $1.09
On September 5, 2025, Cardano ADA/USD four-hour chart showed the formation of a falling wedge pattern. A falling wedge occurs when price action narrows between two downward-sloping trendlines, usually signaling a potential bullish reversal once the upper boundary is breached.
In the current setup, ADA traded at $0.82 and tested resistance near the wedge’s upper trendline. The structure suggested weakening selling pressure as price compressed toward the apex. With volume holding around 900,000 ADA, momentum appeared ready to shift. Technical projections indicated that confirmation of the breakout could drive the token 33 percent higher, placing the target near $1.09.
The pattern aligned with ADA’s 50-period exponential moving average, which hovered at $0.83. A decisive move above this level would further validate the bullish signal. The projected target also coincided with the next resistance zone visible on the chart, reinforcing the likelihood of price gravitating toward that level.
Traders monitored this setup as Cardano approached a critical inflection point. The falling wedge highlighted a shift in market dynamics, where persistent downward pressure gradually gave way to accumulation and breakout potential. If the breakout sustained, ADA could re-enter a higher trading range, marking a significant technical advance for the asset.
Cardano MACD Shows Neutral Momentum With Signs of Recovery
On September 5, 2025, the MACD indicator for Cardano on the two-hour chart presented a neutral but slightly improving setup. The MACD line, plotted in blue, crossed just above the signal line in orange, hovering near the zero axis. This shift reflected early signs of momentum returning after a period of sideways trading.
The histogram, which measures the distance between the MACD and the signal line, showed small green bars emerging. This development indicated that bullish pressure was starting to outweigh recent bearish phases. The proximity of both lines to the zero line suggested that momentum had reset, giving ADA space for a directional move.
If the positive crossover holds, Cardano could build momentum in line with its recently identified falling wedge breakout structure. The MACD confirmation would strengthen the case for a continuation toward the projected upside target near $1.09. However, if the crossover fades, ADA risks slipping back into consolidation, leaving traders waiting for stronger signals.
This technical picture placed Cardano at a pivotal moment, with the MACD highlighting the possibility of a trend reversal that could align with broader breakout patterns on the price chart.
Cardano RSI Points to Neutral Zone With Balanced Momentum
On September 5, 2025, Cardano’s Relative Strength Index (RSI) on the two-hour chart stood at 50.03, positioning the asset in the neutral range. The RSI measures the strength of recent price moves on a scale from 0 to 100, with levels above 70 signaling overbought conditions and levels below 30 indicating oversold conditions.
Cardano’s RSI has fluctuated between 40 and 60 over the past sessions, showing a balance between buyers and sellers. This sideways movement highlighted indecision in the market, with neither side able to dominate. The indicator’s recent rise from sub-40 levels to around 50 suggested that selling pressure was easing, allowing buying interest to stabilize the price.
The neutral RSI reading aligned with Cardano’s broader technical picture, where a falling wedge breakout pattern hinted at bullish potential. While the RSI did not yet confirm strong upward momentum, its position near the midpoint implied that the asset had room to climb without facing immediate overbought pressure. If buyers gain control, ADA could strengthen its move toward the projected breakout target near $1.09.
