On July 22, 2025, Cardano founder Charles Hoskinson responded to a growing governance dispute involving a Delegated Representative (DRep) known as “Whale.” The conflict began when Whale started automatically voting “no” on all proposals from Input Output Global (IOG), the development company led by Hoskinson. Whale cited dissatisfaction with IOG’s delivery and spending, challenging its role in the network.
Hoskinson addressed the issue directly, calling Whale’s voting behavior “emotional” and lacking technical justification. He urged the Cardano community to delegate voting power to what he called “rational” participants in order to protect the integrity and direction of the protocol.
Hoskinson Rejects Whale’s Accusations
The dispute centers on Whale’s claim that IOG proposals do not deliver sufficient results and involve unnecessary spending. In particular, Whale criticized a $100 million proposal to convert ADA to a stablecoin, claiming it would harm the market. Hoskinson rejected that argument, stating the move would not destabilize the ecosystem and instead aimed to meet long-standing community goals around liquidity.
He defended Cardano’s development, citing successful milestones such as the Voltaire governance phase, Hydra scaling solution, Midnight privacy protocol, and improvements to the Plutus smart contract platform. According to Hoskinson, these developments prove IOG’s ongoing contribution to the network.
A Call for Responsible Delegation
Hoskinson warned that blanket rejections based on personal dissatisfaction threaten the network’s progress. He emphasized that decentralization requires accountability, and DReps must assess proposals individually based on technical merit.
As elections approach and IOG reduces its governance role, he called this a decisive period for Cardano. He encouraged ADA holders to review how they delegate their votes and support DReps focused on long-term collaboration, not personal disputes.
Hoskinson also highlighted the upcoming Rare Evo conference as a platform for community input on constitutional revisions and treasury management. He reiterated that Cardano’s ability to grow depends on informed and cooperative governance.
The governance clash underscores the growing pains of decentralized systems. Hoskinson maintains that Cardano can surpass Ethereum in the long term, but only if its community continues to engage with reason and accountability. As the protocol moves toward full on-chain governance, this moment could shape the network’s future direction.
Cardano Breaks Out of Bullish Flag Pattern on July 23
On July 23, 2025, the Cardano to United States Dollar (ADA/USDT) chart confirmed a bullish flag breakout. A bullish flag pattern forms after a strong upward price move followed by a downward-sloping consolidation channel. This structure signals a pause before continuation and typically results in another sharp rally once the price breaks above the upper trendline.
In this case, ADA rallied out of the flag with strong momentum and already gained 23 percent from the breakout point. The breakout also happened above the 50-period Exponential Moving Average (EMA), which now sits at $0.70 and acts as dynamic support. ADA is currently trading around $0.87.
If the bullish pattern plays out fully, the price may climb another 226 percent from the current level. That move would set the next technical target near $2.87. This level aligns with the measured move projected from the flagpole’s height added to the breakout zone.
Volume increased during the breakout, further confirming buying interest. As long as ADA holds above the upper flag boundary and the EMA, momentum favors continued upward movement toward the $2.87 target.
Cardano SMI Holds Bullish Momentum Above 60 on July 23
On July 23, 2025, the Stochastic Momentum Index (SMI) for Cardano to United States Dollar (ADA/USD) maintained strong bullish momentum. The SMI line reads 61.69, with the signal line slightly higher at 62.81. The Stochastic Momentum Index is a refined version of the classic stochastic oscillator, designed to detect trend strength and potential reversals.
Both lines are positioned well above the zero level, showing that momentum remains in favor of buyers. This zone often reflects an extended bullish phase. The fact that the SMI and signal lines are nearly parallel and holding steady suggests a sustained uptrend rather than short-term volatility.
If the SMI holds above 50 while avoiding any sharp downward crossover, Cardano may continue to build on recent technical breakouts. This reading supports the bullish continuation pattern observed on the price chart, especially following the breakout from the bullish flag structure.
Cardano RSI Enters Overbought Zone on July 23
On July 23, 2025, the Relative Strength Index (RSI) for Cardano to United States Dollar (ADA/USD) rose to 75.99, with its 14-period moving average slightly lower at 75.18. The RSI measures the speed and magnitude of recent price changes, helping to identify overbought or oversold conditions. Values above 70 usually indicate that the asset is overbought, while values below 30 point to an oversold condition.
The current reading places ADA in overbought territory, showing strong bullish momentum. The RSI climbed steadily throughout July, confirming the upward breakout seen on the price chart. At the same time, the RSI line remains above its moving average, which suggests that upward pressure still dominates.
However, the move into overbought territory may also indicate that the rally is extended. If RSI begins to turn downward or crosses below the moving average, it could signal weakening momentum. Until then, buyers appear in control, but traders may watch for signs of exhaustion as ADA pushes further above the 70 threshold.
