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Cardano’s price is gradually recovering to around $0.9559 after a 4% drop. While market fluctuations and decreasing investor interest negatively impact price trends, experts anticipate a forthcoming recovery. In the meantime, Charles Hoskinson, the founder of Cardano 
$0.853327, is in the spotlight for burning $100 million worth of the ADA meme coin, CHARLES.
Massive Token Burn
Charles Hoskinson has made a daring move in the crypto sector. On January 30, he burned 900 billion ADA meme coins that were airdropped to him by the token community. The anonymous creator of the CHARLES meme coin sent these billions of tokens to Hoskinson to gain recognition.
However, Hoskinson created a burn wallet and destroyed the 900 billion CHARLES tokens. Jokingly, he remarked, “Do I have 900 billion tokens? Am I losing my mind?” This action increased the token’s total market value to $71 million and its trading volume to $5.14 billion.
Why Did Hoskinson Burn These Tokens?
Before Donald Trump launched TRUMP and MELANIA meme coins, there was significant interest in these cryptocurrencies. Tokens influenced by celebrities were particularly popular. However, Cardano’s founder did not want this to happen with the ADA meme coin.
Hoskinson emphasized that hype does not represent value. He advised crypto users not to follow any project thoughtlessly, stating that he deemed this action necessary to preserve Cardano’s reputation as a blockchain project.
This decision elicited mixed reactions within the community. Some praised Hoskinson for his brave step, while others suggested offering donations instead of burning tokens. Vitalik Buterin, for example, donated profits from several meme coins, including Shiba Coin, to help India.
Cardano Price Predictions
ADA remains among the top cryptocurrencies in the market. Currently, Cardano’s price hovers around $0.96 after a 4% weekly decline. However, the ADA price chart indicates a cup and handle formation, suggesting an expected recovery soon.
With this bullish pattern, Cardano is trending towards the $1.30 level. The key resistance sits at $1.10, with support at $0.90. Technical indicators show that ADA tokens are in a buying zone, and the RSI also signals bullish momentum. If Cardano surpasses the $1.10 resistance, the next targets could be $1.30 and subsequently $1.796. However, if it fails to hold the support level of $0.90, further declines could occur.
Hoskinson’s decision to burn CHARLES tokens signals a rise in cryptocurrencies lacking credit. The creator of the ADA meme coin shared 90% of the supply with Hoskinson, aiming to profit off his name. By burning these tokens, Hoskinson aims to protect ADA’s value while the ADA token shows a cup and handle formation, indicating a bullish movement ahead.
