Newton Gitonga
The Cardano Foundation’s X account was hacked on December 8th, unleashing a wave of fraudulent activity.
ATTENTION 🚨
The Cardano Foundation account got HACKED!
This is a false statement!
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Hackers spread false information and promoted a scam Solana-based token, ADA/SOL, exploiting the credibility of legitimate sources like a recent podcast and the Foundation’s official website.
This deceptive tactic initially garnered significant attention, driving approximately $500,000 in trading volume for the counterfeit token.
However, the scam quickly unraveled as the community identified and exposed the fraud, leading to a dramatic 99% price crash for ADA/SOL.
The attack didn’t end there.
The hackers further amplified the damage by posting a fabricated update, falsely claiming the Cardano Foundation would halt support for its native ADA token due to the ongoing SEC lawsuit and that ADA withdrawals were suspended.
This coordinated misinformation campaign, despite rapid efforts to remove the false announcements, significantly impacted investor sentiment.
Months of positive market outlook for Cardano evaporated, replaced by uncertainty and fear fueled by the ongoing compromise of the official X account.
The situation raised serious concerns about the blockchain’s stability and its capacity to maintain its current price levels.
The @Cardano_CF account remains compromised. Beware: there’s no SEC lawsuit, no token burn, and no “ADASol” bridge. Also, CF team members will never DM you to ask for anything. Follow @Cardano for accurate updates. Big thanks to @support for their help. ❤️
ADA’s momentum wanes
The Cardano Foundation incident triggered bearishness around the native coin.
The asset appears poised for more slumps as market concerns rise following Sunday’s hack.
ADA trades at $1.15 during this publication, down 4.51% daily.
Technical indicators show ADA’s macro momentum has switched downward.
The Moving Average Convergence Divergence displays a bearish wave as the MACD line moved beneath the signal line over the weekend.
That suggests potential near-term price dips for Cardano.
A downside MACD crossover amid weak trading volumes often precedes bearish price actions.
Moreover, ADA lacks massive bullish signals at prevailing levels.
The alt requires significant momentum resurgence to challenge the nearest resistance zones.
The current outlook signals potential struggles for Cardano unless bulls dominate the broader market.
Buyer uptick would see the token targeting the resistance at $1.20.
A successful flip of this hurdle into footing could open the path to $1.32.
Meanwhile, such an uptrend would necessitate immense bull activity, robust trading volumes, and enhanced sentiments.
Meanwhile, seller dominance could trigger a significant bearish wave to the vital support barrier at $1.01.
A rebound from this support amidst negative sentiments, possibly catalyzed by the hacking incidents, could keep ADA range-bound.
Nonetheless, overcoming $1.32 with massive volumes could cancel the downside narrative.
That would confirm renewed momentum for ADA, possibly attracting more buyers to the Cardano ecosystem.
Meanwhile, the altcoin’s 160% monthly surge could stir optimism amidst impressive Q4 performance.
Whales continue to accumulate ADA, reflecting confidence in the token’s price actions.
Enthusiasts will likely watch the hacking developments, which could magnify bearish sentiments upon delayed recoveries.
The reaction from Cardano founder Charles Hoskinson has also instilled confidence in the blockchain’s resilience.
Looks like the CF account got hacked. Try harder hackers
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