Can ADA Price Resume Its Uptrend After the Chain Split Storm? Analyzing the Aftermath of the Cardano Security Incident

Market sentiment after the chain split event

The chain split event triggered short-term panic among investors, and the exchange’s suspension of ADA deposits and withdrawals further amplified market volatility. However, as the team quickly took action, the network was re-unified, and market sentiment gradually eased. This reflects that the market’s expectations for Cardano are still heavily influenced by network security incidents.

The possibility of a rebound in the price of ADA

ADA experienced a significant decline during the event, but there was no long-term breakdown. Technical analysis shows that if it can regain the key support range after a short-term pullback, the price may see a rebound.

The medium-term trend will depend on:

• Is the network stable?
• Transparency of the development team
• Was the node upgrade completed successfully?

If Cardano can strengthen its security mechanisms in the future, confidence in ADA is expected to recover.

Is the long-term value of Cardano affected?

This event is essentially a risk exposed by the underlying verification logic under extreme conditions, and is not an irreparable structural flaw. In the long term, Cardano still possesses:

• Strong academic background
• Security-oriented design philosophy
• Active developer ecosystem

Therefore, the impact of the event on its long-term value is more inclined towards the “reputation aspect” rather than a collapse of the technical foundation.

The support of ecological development for token prices

The Cardano ecosystem is rapidly expanding, including:

• DeFi protocol
• Sidechains and Parachains
• Real World Asset (RWA) attempts
• Governance Structure Optimization

These modules are still in the growth stage and can provide actual demand for ADA, such as staking, fee consumption, and participation in network governance.

How to restore trust between users and nodes

The team’s quick response has created a good foundation for restoring trust. Next, Cardano may take:

• Stricter node version management
• more完善的测试流程
• Development document upgrade
• Incident Analysis Report to Improve Transparency

As long as communication is done properly, community trust can be repaired in the short term.

Future risks that investors need to pay attention to

Despite the event being resolved, investors still need to pay attention to:

• Will there be similar format error transactions?
• Are the old nodes completely eliminated?
• Does the security patch completely cover potential vulnerabilities?
• The position of Cardano in the competition among Layer 1 public chains has changed.

These factors will all affect the medium to long-term trend of ADA.