ADA eyes $0.47 despite Cardano’s security challenges; Check forecast

The cryptocurrency market is having a breather following its bearish performance last week.

Bitcoin briefly touched the $81k level over the weekend but has temporarily bounced back and touched the $87k region a few hours ago.

ADA, the native coin of the Cardano blockchain, is also up by 1% in the last 24 hours and could rally higher despite security challenges with the network. 

Cardano blockchain temporarily splits into two

ADA is trading above $0.40 per coin despite the network’s recent security challenge.

The Cardano development team announced on Saturday that the blockchain was temporarily split into two following a malformed transaction.

The post-mortem report revealed that the older and newer node versions of the blockchain validated transaction data submitted to the network differently.

The network mismatch resulted in some block producers following the new chain while the others stayed on the normal one. 

However, the team quickly deployed an emergency patch and network-wide upgrade instructions.

The incident was traced to a wallet belonging to a former testnet participant. The network split occurred when newer nodes accepted a malformed transaction that older nodes rejected.

The transaction exploited a bug in an underlying software library whose validation logic failed to trap.

Once the bug was exploited, some block producers began building on the new chain, while others maintained the old chain. 

Following the deployment of the patched node software, Cardano instructed node operators to upgrade and rejoin the original chain.

In addition to that, exchanges and wallet providers paused deposits and withdrawals on the Cardano chain throughout the incident as a precaution.

According to Intersect, no user funds were lost, and most retail wallets were not affected by the split because they relied on components that safely ignored the malformed transaction.

Cardano co-founder Charles Hoskinson announced that he had involved the authorities as he believed the event was a targeted, premeditated attack by a disgruntled stake-pool operator who had been seeking ways to harm Input Output Global.

According to Hoskinson, restoring full network uniformity could take weeks.

ADA eyes the $0.47 resistance level

The ADA/USD 4-hour chart is bearish as ADA has added 1% to its value in the last 24 hours.

However, in the last seven days, the coin has lost 17% of its value as Bitcoin and the other major cryptocurrencies underperform.

The coin’s RSI stands at 35 as Cardano slowly recovers from the recent oversold conditions.

The MACD lines are also within the negative territory, suggesting a bearish trend.

At press time, ADA is trading close to $0.41. If the recovery continues, the coin could gain efficiency by hitting the $0.4382 level.

An extended bullish run would allow ADA to surge towards the $0.47 resistance level.

However, if the bearish trend resumes, ADA could retest the Friday low of $0.3875 over the next few hours.

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