Cardano recently underwent a highly anticipated Chang hardfork, bringing about significant changes to the Layer-1 blockchain. The upgrade included the implementation of on-chain voting, Delegate Representatives, enhanced smart contract capabilities, and a revamped governance structure with cost model improvements. Despite these upgrades, Cardano has seen a drop in price in recent days.
At the time of writing, Cardano (ADA) was down 2.7%, trading at $0.3335. The daily trading volume stood at $307.4 million, with a market cap of $11.75 billion. In the past 24 hours, Cardano witnessed liquidations amounting to $731.46K, with long positions comprising the majority at $698.32K. This indicates significant selling pressure on the token, leading to a downtrend in its price.
Various technical indicators suggest that bears are currently in control of Cardano’s market. The crypto asset is trading near the lower boundary of its Bollinger Bands, hinting at a potential oversold condition that could trigger a stabilization or minor recovery in price. However, the market’s volatility leaves room for further declines. The Moving Average Convergence Divergence (MACD) line is below the signal line, indicating strong selling pressure and a continuation of the downward trend. The Relative Strength Index (RSI) stands at 38.56, below the neutral threshold of 50, signaling ongoing selling momentum. The Aroon indicator also points to a predominantly bearish trend, with Aroon Down at 100.00% and Aroon Up at 35.71%.
According to analyst Crypto Yapper, Cardano’s recent losses are part of a multi-month Falling Broadening Wedge pattern. This pattern is characterized by two descending and diverging trendlines, resulting in lower lows and higher highs with increasing volatility over time. If ADA can break above the upper trendline of this pattern, it could trigger a sharp reversal in its price, potentially driving it higher in the near future.
While Cardano has introduced significant upgrades through the Chang hardfork, the market response has been less favorable, with a decline in price and strong selling pressure. Technical indicators suggest that bears are currently dominating the market, but analyst insights provide hope for a potential turnaround in the future. Investors and traders interested in Cardano should closely monitor these developments to make informed decisions about their positions.
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