Cardano remains in bearish territory despite Chang hardfork
crypto.news 02 September 2024 16:05, UTC Cardano has experienced a drop in price despite the Layer-1 blockchain completing its highly anticipated Chang upgrade.
The Chang hardfork introduces key changes to Cardano, including on-chain voting, Delegate Representatives, enhanced smart contract capabilities, and a new governance structure with cost model improvements. ADA holders can now vote directly on governance issues or delegate their voting power to trusted representatives.
At the time of writing, Cardano (ADA) was down 2.7%, exchanging hands at $0.3335 per price data from crypto.news. The crypto asset’s daily trading volume hovered around $307.4 million while its market cap stood at $11.75 billion.
The latest drop in price comes as, in the past 24 hours, Cardano saw liquidations totaling $731.46K, with the majority being long positions at $698.32K, while short positions accounted for $33.14K. This suggests considerable selling pressure as the token remains in a downtrend.
Technical indicators also indicate that bears are in control, with ADA trading near the lower boundary of its Bollinger Bands, suggesting a potential oversold condition that might lead to a stabilization or minor recovery in price. Nevertheless, the volatility of the market leaves room for further declines.
The Moving Average Convergence Divergence indicates a strong selling pressure, with the MACD line positioned below the signal line, signaling a likely continuation of the downward trend. Similarly, the Relative Strength Index stands at 38.56, below the neutral threshold of 50, further indicating selling momentum without reaching oversold territory yet.
Further, the Aroon indicator points to a predominantly bearish trend, with the Aroon Down at a full 100.00%, indicating strong downward momentum, while the Aroon Up is at a lower 35.71%, showing weak upward movements.
However, according to analyst Crypto Yapper, Cardano’s intraday losses are part of a multi-month Falling Broadening Wedge pattern characterized by two descending and diverging trendlines, indicating lower lows and higher highs with increasing volatility over time.
Given the nature of the Falling Broadening Wedge, if ADA can break above the upper trendline, it could lead to a sharp reversal, potentially driving the price higher. This volume spike reinforces the possibility of an approaching breakout, making it a critical level for traders to watch closely.
