Cardano, the blockchain platform, recently faced a distributed denial-of-service (DDoS) attack, which the network successfully mitigated with minimal impact on its operations. However, the incident has contributed to a 3% drop in the price of Cardano’s native token, ADA, which is currently trading below $0.40.
Cardano Developer IOHK Explains Network Defense
Input Output Hong Kong (IOHK), the developer behind Cardano, released a video discussing the mid-July DDoS attack with experts. The attack, carried out by a bad actor, involved a series of transactions that increased the network’s load, slowing down transaction processing.
Despite the increased load, the Cardano network responded well to the attack. The block production rate initially dropped by 20% but recovered within a few hours. Intersect, a group of Cardano members, builders, and contributors, formed a technical task force and rallied the community to tackle the attack.
ADA Price Drops 3% in the Past Week
Cardano’s native token, ADA, has lost nearly 3% of its value this week, trading at around $0.38 as of Friday. The altcoin broke out of its downward trend on July 9 and could extend its losses by another 6%, potentially reaching the June 18 low of $0.3575 before beginning a recovery.
However, if the $0.3575 support holds and buying interest emerges, ADA could rally nearly 40% to its target of $0.50, which it reached in mid-May. The Relative Strength Index (RSI) momentum indicator currently reads neutral at 41.90. A daily candlestick close above the $0.42 resistance level could invalidate the bearish thesis for Cardano.
Despite the DDoS attack and price drop, the Cardano community remains confident in the network’s resilience and ability to withstand such challenges. The successful mitigation of the attack demonstrates the platform’s robustness and commitment to maintaining a secure and reliable blockchain ecosystem.
Read Also: Cardano (ADA) Price Crisis: What’s Next After the 50% Drop?
