Despite the completion of the highly anticipated Chang upgrade on Cardano’s Layer-1 blockchain, the price of ADA has experienced a significant drop. The Chang hardfork brought crucial changes to the Cardano ecosystem, including the introduction of on-chain voting, Delegate Representatives, enhanced smart contract capabilities, and a new governance structure with cost model improvements. ADA holders now have the ability to vote directly on governance issues or delegate their voting power to trusted representatives.
As of the latest data available, Cardano (ADA) is down by 2.7%, trading at $0.3335. The daily trading volume of the crypto asset is around $307.4 million, with a market cap of $11.75 billion. The recent decline in price led to liquidations totaling $731.46K in the past 24 hours, with the majority coming from long positions amounting to $698.32K, while short positions totaled $33.14K. This indicates notable selling pressure as the token continues to trend downwards.
Technical indicators suggest that bears currently dominate the Cardano market. ADA is trading near the lower boundary of its Bollinger Bands, hinting at a potential oversold condition that could lead to a stabilization or minor recovery in price. The Moving Average Convergence Divergence (MACD) line positioned below the signal line points to strong selling pressure, indicating a possible continuation of the downward trend. The Relative Strength Index (RSI) standing at 38.56, below the neutral threshold of 50, further confirms the selling momentum without reaching oversold levels yet.
Despite the current intraday losses, analyst Crypto Yapper has identified a multi-month Falling Broadening Wedge pattern on Cardano’s price chart. This pattern is characterized by two descending and diverging trendlines, showcasing lower lows and higher highs with increasing volatility over time. If ADA manages to break above the upper trendline of the Falling Broadening Wedge, it could trigger a sharp reversal in price, potentially driving it higher.
Overall, while the Chang upgrade brought significant improvements to Cardano’s blockchain, the recent price decline indicates ongoing market challenges. With technical indicators showing bearish dominance and analyst predictions pointing towards a possible reversal pattern, ADA investors must remain cautious and monitor the market closely for potential price movements.
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