Cardano price is trading near $0.2696 today after consolidating gains from the rebound from the crash lows of $0.23. The token has fallen 73% from its August highs above $1.00, but founder Charles Hoskinson’s revelation of $3 billion in unrealized personal losses highlights that even insiders are feeling the pain of this bear market.
Hoskinson reveals $3 billion unrealized loss
Cardano founder Charles Hoskinson revealed more than $3 billion in unrealized losses during a live broadcast from Tokyo, offering a rare glimpse into his personal exposure during the market downturn. The revelation contradicts claims that crypto founders are immune from losses affecting retail investors.
Hoskinson emphasized that he could have cashed out but chose to remain committed to building the ecosystem. He described the slowdown as a transition period during which financial systems adapt to new technologies rather than as a breaking point.
The founder cited Cardano-based projects including Starstream and Midnight as examples of long-term development focused on data integrity and privacy applications. He said he had no plans to exit his positions and viewed the sell-off as part of a longer cycle.
Derivatives data shows deleveraging is complete
$ADA Derivatives data (Source: Coinglass)
Open interest fell 3.02% to $421.32 million while volume collapsed 29.83% to $824.89 million. Options volume fell 92.94% to just $6.59,000, reflecting the depletion of trading activity following the spike in volatility.
The long/short ratio stands at 1.03, almost balanced after the crash eliminated leveraged long positions. On Binance, top traders maintain a ratio of 2.29 per account, showing that some bullish bias persists among the big players.
Related: Aster ($ASTERPrice forecast: $ASTER Rebound Meets Supply Zone as Leverage Continues to Fall
Over the last 24 hours, $590.94K of positions were liquidated, including $440.14K of long positions and $150.80K of short positions. The relatively low liquidation volume compared to peak crashes suggests that debt has been significantly removed from the system.
The open interest chart shows $ADA Open interest has fallen from highs above $2 billion during the rally to current levels around $424.74 million. This deleveraging removes the forced selling pressure that accelerates crashes and creates the conditions for more stable price developments.
Daily chart shows channel structure in descending order
$ADA Price dynamics (Source: TradingView)
On the daily chart, Cardano is trading within a descending channel that has guided price action since August. Resistance for the channel currently stands at around $0.35, while support lies near $0.20.
The price is trading well below the four major EMAs. The 20-day is at $0.3076, the 50-day is at $0.3522, the 100-day is at $0.4219 and the 200-day is at $0.5203. The Supertrend indicator remains bearish at $0.3414.
The $0.50 horizontal resistance area highlighted on the chart represents the first major supply zone in the event of a recovery. The current price of $0.27 is approximately 73% below the August highs above $1.00.
The short-term chart shows the consolidation triangle
$ADA Price Action (Source: TradingView)
On the 30-minute chart, Cardano formed a consolidation pattern between $0.26 and $0.29 after rebounding from the crash lows. A descending trendline from high caps on February 6 approaches $0.275.
The RSI sits at 48.14, neutral territory which provides room for movement in either direction. The MACD has converged towards zero, reflecting sideways price action during consolidation.
Related: Solana Price Prediction: SOL Defends $87 After 20% Rise as ETFs Continue to Exit
The consolidation pattern will resolve with a directional move. A break above $0.28 would signal a continuation towards the $0.30 zone, while a break below $0.26 would target a retest of the crash low of $0.23.
Outlook: Will Cardano Rise?
The trend remains bearish as prices trade in the descending channel, but the deleveraged market and founder commitment suggest conditions for a recovery are forming.
- Bullish case: A daily close above $0.3076 would reclaim the 20-day EMA and signal that the crash low has marked a capitulation. The CME futures launch and midnight development provide structural catalysts if overall sentiment improves.
- Bearish case: A close below $0.26 would break consolidation support and target the crash low of $0.23. With Hoskinson sitting on $3 billion in unrealized losses, further declines would test even the most committed holders.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses arising from the use of the content, products or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
