Cardano (CRYPTO: ADA) active addresses and social discussion both spiked Thursday even as the token trades near its lowest price since December 2020, according to Santiment data.

Why Everyone Is Talking About Cardano While It Crashes

Much of the rising chatter traces back to Charles Hoskinson’s recent warnings that more Cardano projects could fail, his decision to step back from public involvement, and ongoing governance disputes over treasury funding that have split the community.

That combination of heavy bearish sentiment and a spike in on-chain activity has historically hinted at a mild relief rally. 

Santiment noted the current setup mirrors two previous instances this cycle where the same pattern appeared just before a bounce.

A DeFi App Just Lost Up To $20 Million In ADA

SecondFi, a Cardano DeFi project, suffered a security breach tied to a flaw in its own wallet generation software, not the Cardano protocol itself. 

SecondFi estimates losses at around 16 million ADA. However, Yu Xian estimates that attackers stole more than 129 million ADA and other tokens, pushing the total damage above $20 million after accounting for non-ADA holdings.

Hoskinson moved quickly to separate the incident from the broader network. 

“Cardano is not broken. Cardano, the network, was not hacked,” he said, framing the exploit as limited to a single application rather than a protocol-level failure. 

ADA’s Chart Shows A Demand Zone That Failed Completely

ADA is attempting a small bounce, but the broader structure remains heavy. 

Price has decisively broken below the $0.21 to $0.22 demand zone that held for months between February and May, a level that failed completely in early June and now sits as firm overhead resistance.

The descending trendline from January’s highs continues to dominate, with the SAR sitting well above at $0.1718 and the full EMA stack overhead between $0.1664 and $0.3030.

Reclaiming the SAR and 20 EMA opens a path toward $0.1959. Losing today’s low at $0.1384 opens fresh lows toward $0.1200.

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