Cardano (ADA) is under renewed scrutiny as blockchain data points to a notable drop in on‑chain engagement. Analysts label the network a “ghost chain,” referencing falling transaction counts and user interactions. The narrative builds on concerns that Cardano’s adoption has stalled despite its early promises of scalability and decentralization.
At the same time, some reports highlight growing institutional interest. Cardano’s regulatory alignment, recent protocol upgrades, and focus on real‑world use cases may support longer‑term growth. These upgrades include scalability improvements and partnerships aimed at increasing utility across enterprise platforms.
Cardano founder Charles Hoskinson addressed ADA’s exclusion from a U.S. government data pilot program that used Chainlink’s infrastructure. In a public statement, he cited Chainlink’s “absurd” integration fees as the reason behind ADA’s omission.
The program selected multiple blockchain networks but left Cardano out. Hoskinson explained that despite ADA’s technical readiness, the network could not justify Chainlink’s costs for a one-time demonstration. He framed the situation as a broader challenge facing blockchain collaboration in public sector projects.
In a separate post, Hoskinson described ADA as inseparable from his identity.
“My life is tied to this project,”
he said, adding that he sees Cardano as his legacy. He emphasized the importance of surpassing Ethereum in utility and adoption.
Hoskinson said that Cardano’s design choices — such as extended UTXO models and peer-reviewed development — position it to compete directly with Ethereum. However, he acknowledged that overcoming entrenched incumbents will require sustained ecosystem traction.
Observers remain divided on Cardano’s future. Some call attention to the falling user engagement as a structural weakness. Others argue that institutional alignment and technical progress — especially in smart contracts and scalability — position ADA for renewed relevance.
Hoskinson’s dual stance — both defending against criticism and attacking integration barriers — underscores the tension between Cardano’s current perception and its intended roadmap.
Cardano ADA/USD is showing signs of a potential breakout after forming a classic bullish flag pattern on the 4-hour chart. A bullish flag is a continuation pattern that follows a sharp upward movement, then consolidates downward within parallel trendlines, typically resolving with another upward leg equal to the height of the initial rally.
The pattern formed after ADA rallied from approximately $0.62 to nearly $0.96 between early July and mid-August. Since then, ADA has been moving within a downward-sloping channel. As of September 2, 2025, the price trades near $0.8185, while the flag’s resistance is close to $0.87. A breakout above that range could confirm the pattern and open the door to a measured move toward $1.1226, representing a potential 37% increase from the current level.
Volume remains stable with a 2.47 million turnover on the day, and the 50-period EMA hovers above price at $0.8398. If ADA breaks through both the EMA and the upper flag boundary, technical momentum could align with recent institutional interest and protocol upgrades noted in the broader ecosystem. The confirmation of this pattern would also come amid renewed scrutiny over Cardano’s on-chain engagement, positioning the move as a test of investor confidence versus declining usage metrics.
The MACD chart for Cardano (ADA), created on September 2, 2025, shows a potential reversal signal forming after a prolonged consolidation phase. As of the latest 4-hour session, the MACD line (blue) is crossing above the signal line (orange), with both lines moving out of negative territory. This crossover is often viewed as an early bullish signal, suggesting a possible shift in momentum.
Although histogram bars remain close to the zero line, they have flipped green, indicating that bullish pressure is beginning to outweigh bearish sentiment. The momentum remains weak for now, but the consistent tightening of the MACD and signal lines suggests a buildup that could align with broader technical patterns, such as the bullish flag seen on the main price chart.
If sustained, this crossover could support further upside confirmation, especially if price breaks out above the descending flag channel. The timing of this MACD shift also coincides with key narrative developments surrounding Cardano’s roadmap and institutional presence, which may influence short-term market sentiment.
The Relative Strength Index (RSI) for Cardano (ADA), based on the 4-hour chart from September 2, 2025, stands at 47.11, with the RSI moving average at 43.01. This level sits below the 50-neutral midpoint, indicating weak but stabilizing momentum.
The RSI has been range-bound between 35 and 55 for most of August, reflecting sideways price action and a lack of trend strength. ADA is neither overbought nor oversold, which means there’s room for a move in either direction. However, the RSI’s recent rise from the low 40s may signal early accumulation pressure, especially if it climbs above the 50 mark in the next sessions.
If confirmed with volume and a price breakout — such as the flag pattern forming on ADA’s main chart — this RSI setup could support further upside potential. Until then, the indicator remains in a neutral zone, providing neither confirmation nor rejection of a trend shift.
