Cardano recently underwent a highly anticipated Chang hardfork, bringing significant changes to the Layer-1 blockchain. Some of the key updates include on-chain voting, Delegate Representatives, enhanced smart contract capabilities, and a new governance structure with cost model improvements. This upgrade allows ADA holders to participate directly in governance decisions or delegate their voting power to trusted representatives.
Recent Price Movement of Cardano
Despite the successful Chang upgrade, Cardano’s price has experienced a 2.7% drop, currently trading at $0.3335. The daily trading volume for ADA is around $307.4 million, with a market cap of $11.75 billion. In the past 24 hours, Cardano saw liquidations totaling $731.46K, mostly from long positions, indicating significant selling pressure and a downward trend.
Technical indicators suggest that bears are currently in control of the market. ADA is trading near the lower Bollinger Bands boundary, indicating a potential oversold condition that could lead to either stabilization or a minor price recovery. The Moving Average Convergence Divergence (MACD) line is below the signal line, signaling strong selling pressure and a likelihood of the downward trend continuing. The Relative Strength Index (RSI) is at 38.56, below the neutral threshold of 50, confirming the selling momentum. The Aroon indicator also indicates a predominantly bearish trend, with Aroon Down at 100% and Aroon Up at 35.71%.
According to analyst Crypto Yapper, the current intraday losses of Cardano are part of a multi-month Falling Broadening Wedge pattern. This pattern is characterized by two descending and diverging trendlines, showing lower lows and higher highs with increasing volatility over time. If ADA can break above the upper trendline of this pattern, it could potentially lead to a sharp reversal and drive the price higher.
Despite the recent Chang upgrade and the exciting developments on the Cardano blockchain, the token’s price has faced downward pressure, resulting in a drop in value. Technical indicators suggest that the market is currently bearish, but there is a possibility of a price reversal if certain key levels are breached. Investors and traders should carefully monitor these indicators and market trends to make informed decisions regarding their ADA holdings.
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