Cardano’s ADA token jumped to a four-month high of $0.92 following founder Charles Hoskinson’s announcement of an independent treasury audit to address fraud allegations involving 318 million ADA tokens.
Cardano ADA $0.87 24h volatility: 4.3% Market cap: $31.37 B Vol. 24h: $1.70 B price jumped past $0.92 on July 21, marking a four-month high amid growing scrutiny over Cardano’s treasury. The move follows founder Charles Hoskinson’s public confirmation of legal actions, and an independent audit, scheduled for August, to address fraud allegations involving 318 million ADA.
I just received the first copy of the audit report. I requested a lot more detail and context in several areas, but it's shaping up quickly. I believe we are on schedule for a mid-August release, assuming the work continues at this pace and there are no delays.
I will read the…
— Charles Hoskinson (@IOHK_Charles) July 20, 2025
The controversy was sparked by NFT artist Masato Alexander, who accused Hoskinson of misappropriating $619 million in ADA. The claims originated from a May 7 post that gained traction across crypto communities, alleging undisclosed transfers to personal wallets.
In response, Hoskinson announced a comprehensive third-party audit of Input Output Global’s ADA reserves. “The audit will provide full transparency into IOG’s treasury activity,” Hoskinson stated, aiming to clear public doubt ahead of the audit release expected mid-August.
the fact that this was his position, suggests he NEVER planned to let people know where the funds came from, or how those funds came into his possession to donate.
— masato_alexander (@masatoalexander) July 21, 2025
Despite threats of legal action, Masato has further doubled down on the allegation on Monday, faulting Hoskinson’s failure to disclose the controversial transactions.
Cardano Community Signals Positive Response
Despite the ongoing controversy, the Cardano community appears to be reacting positively to Hoskinson’s commitment to transparency. On-chain metrics from DeFillama show Total Value Locked on Cardano surged past $412 million on Monday, while stablecoin inflows rose 15% over the weekend, from $31.94 million on Friday to $33.4 million by press time.
Cardano Total Value Locked (TVL) vs Stablecoin Inflows | Source: DeFiLlama, July 21
These metrics signal strong community support amid the audit announcement. More importantly, increased ecosystem activity from such spikes in TVL and stablecoin inflows may absorb volatility during corrections or accelerate further upward price momentum.
Cardano Price Forecast: Is the $1.20 Target Viable?
From a technical perspective, ADA is trading above all major Bollinger Bands, with Monday’s candle closing firmly above the upper resistance line at $0.91. The next key resistance is the March 2025 high of $0.9742, shown by the blue dotted line on the daily chart.
Cardano Price Forecast | TradingView
The RSI sits at 84.08, well into overbought territory. This suggests a short-term pullback to $0.85 or even $0.80 could occur before further upside. But if ADA holds above $0.90 this week, the breakout may extend toward $1.00, then $1.20, which aligns with the upper bounds of Q1 2025 accumulation zones.
Barring any negative developments in the audit process, ADA price currently appears well-positioned for another leg-up.
Investors Flock to Best Wallet Presale as Cardano TVL Hits $412 Million
With Cardano’s Total Value Locked (TVL) soaring past $412 million and ADA price reclaiming multi-month highs, DeFi users are now turning to Best Wallet for secure access to on-chain opportunities.
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