The crypto market is taking a short break after last week’s heavy drop. Bitcoin even slipped to around eighty one thousand dollars over the weekend. It has since bounced and briefly touched the eighty seven thousand region a few hours ago.
Cardano’s ADA token also moved up by about one percent in the last day. This small rise came even though the Cardano network faced a serious security issue.
On Saturday the Cardano blockchain temporarily split into two. The development team said the problem started when a malformed transaction triggered a bug in one of the software libraries. Because of that older and newer node versions disagreed on how to read that transaction. Some block producers started following a new chain while others stayed on the normal chain.
The team responded quickly. They pushed out an emergency patch and told everyone to upgrade their nodes to the fixed versions. The issue was traced back to a wallet owned by someone who used to be part of the testnet. The malformed transaction slipped past the validation logic in newer nodes but older nodes caught it. That mismatch caused the split.
Once the patch was released node operators were told to upgrade and reconnect to the original chain. Exchanges and wallet services paused deposits and withdrawals during the incident to keep users safe. Intersect confirmed that no funds were lost. Many retail users were not affected because their wallets ignored the bad transaction by default.
Charles Hoskinson later said he believed this was a targeted attack from a disgruntled stake pool operator. He claimed the attacker had been trying to harm Input Output Global. Hoskinson also said authorities are already involved. He warned that getting everything fully uniform across the network again could take weeks.
Even with all that ADA managed a small recovery. On the four hour chart ADA is still in a bearish zone. It is up one percent today but down seventeen percent over the last week. The RSI is around thirty five which shows it is slowly recovering from oversold conditions. The MACD is still negative which keeps the short term trend tilted to the bearish side.
Right now ADA is trading near forty one cents. If the rebound continues it might reach around forty three point eight cents. A stronger rally could help it climb toward the main resistance at forty seven cents. But if the market turns bearish again ADA could slide back to the recent low near thirty eight point seven cents.