Cardano recently underwent the Chang hardfork, which brought about significant changes to the Layer-1 blockchain. Some of the key updates included the introduction of on-chain voting, Delegate Representatives, improved smart contract capabilities, and a new governance structure with enhanced cost models. ADA holders now have the ability to participate directly in governance decisions or delegate their voting power to trusted representatives.
Despite the anticipated Chang upgrade, Cardano’s price has experienced a 2.7% drop, with ADA trading at $0.3335 at the time of writing. The daily trading volume of the crypto asset is around $307.4 million, with a market cap of $11.75 billion. Over the past 24 hours, Cardano witnessed liquidations totaling $731.46K, with a significant portion coming from long positions. This suggests a prevailing selling pressure and a downtrend in the token’s price.
Technical indicators point towards bears being in control of the market, with ADA trading close to the lower boundary of its Bollinger Bands. This suggests a potential oversold condition that could lead to price stabilization or a minor recovery. However, the market’s volatility leaves room for further declines. The Moving Average Convergence Divergence (MACD) indicator shows strong selling pressure, with the MACD line below the signal line, indicating a potential continuation of the downward trend. The Relative Strength Index (RSI) is also below the neutral threshold of 50, further indicating selling momentum without reaching oversold territory.
Despite the current price drop, analyst Crypto Yapper suggests that Cardano’s intraday losses are part of a multi-month Falling Broadening Wedge pattern. This pattern is characterized by two descending and diverging trendlines, indicating lower lows and higher highs with increasing volatility over time. If ADA can break above the upper trendline of this pattern, it could signal a sharp reversal and potentially drive the price higher in the future.
While Cardano has experienced a recent price drop, there is still potential for a turnaround based on market indicators and analyst predictions. The introduction of new features through the Chang upgrade provides ADA holders with more governance capabilities, which could influence the token’s future performance. Investors and traders should closely monitor market trends and indicators to make informed decisions regarding Cardano’s price movements.
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