- Cardano registered its highest positive sentiment in four months before retreating after misleading SEC-related rumors were disproven.
- ADA’s bullish buzz stemmed from a document falsely interpreted as SEC support for Cardano’s smart contract use in government services.
- Despite sharp price losses, Cardano still holds a slight market cap lead over Dogecoin, showing resilience in community optimism.
Cardano (ADA) has experienced a notable spike in positive sentiment, reaching its highest level of bullishness in the past four months. Analytics firm Santiment reported that favorable social media commentary outweighed negative posts by a ratio of 3.5 to 1, highlighting renewed interest in the token.
The increase in optimism followed a widely circulated document submitted to the official SEC website. It mentioned Cardano’s smart contract potential for government services. The document functioned as a public opinion document although it did not receive its official release from the U.S. Securities and Exchange Commission. Public opinion served as the submission because public input forms part of the agency’s regulatory process through which outside feedback can be provided.
Rumor Fuels Temporary ADA Price Increase
Following the spread of the misinterpreted document, Cardano gained significant traction across online communities. Investor sentiment turned sharply bullish, contributing to a temporary price increase. However, once the document’s nature was clarified and proven unofficial, ADA quickly began to retreat.
Costs for Cardano assets dropped by more than 38 percent from March 2 until the network gave away most of its initial valuation gains. The rapid market correction since then has eliminated the initial excitement because traders realized the disinformation in the SEC filing.
Charles Hoskinson Addresses Centralization Concerns
History shows that Cardano founder Charles Hoskinson confronted accusations that the network functioned through the control of three entities during this time. The founder of Cardano replied by dismissing these accusations because the claims failed to present actual facts while misrepresenting the decentralized operation of the network.
While ADA faced a pullback, Dogecoin (DOGE) recorded a 4 percent gain over the week. This allowed DOGE to close the gap in market capitalization. At present, ADA is valued at approximately $25.5 billion, while DOGE follows closely at $25 billion.
Despite the correction, sentiment around Cardano has remained positive among supporters. The recent activity reflects a strong and vocal community, though it also highlights the influence of misleading online content on price action.
