KDA dips 60% as Kadena ceases operation; Check forecast

Key takeaways

• Kadena Organization has ceased operations, citing current market conditions as the catalyst.
• Its token KDA has tanked 60% in the last 24 hours and could drop further. 

Kadena Organization ceases operations

The organization behind the Kadena blockchain announced on Tuesday that it is no longer able to continue business operations and is now winding down.

In an X post, the team stated that they are unable to continue to promote and support the adoption of this unique decentralized offering due to the current market conditions. 

Kadena is a proof-of-work blockchain, and the team added that it will remain in operation until miners and maintainers depart. However, the team will cease all business activity and active maintenance immediately. 

There are roughly 566 million KDA tokens still to be distributed as mining rewards, and it will continue until 2139. Kadena has been around since 2019 after it was launched by two U.S. Securities and Exchange Commission and JPMorgan alums, Stuart Popejoy and William Martino. The two had previously helped launch the predecessor to JPMorgan Chase’s Kinexys blockchain.

KDA dips by 60%, could suffer further losses

The KDA/USDT 4H chart is extremely bearish, thanks to the token losing 60% of its value in the last 24 hours. It was trading at $0.24 on Tuesday but fell sharply to $0.087 after the Kadena Organization announced its discontinuation.

The technical indicators are extremely bearish, with sellers in control. The RSI off 35 shows that KDA is currently bearish and could enter the oversold region soon. The MACD lines are also within the negative region, indicating a bearish trend.

If the selloff continues, KDA could drop below the October 10 low of $0.057 over the next few hours. The token is down 99% from the all-time high of $28 recorded in November 2021. With no team in place, KDA could struggle to record gains in the medium to long term.

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