Cardano, one of the leading cryptocurrencies, recently completed its highly anticipated Chang upgrade, aimed at enhancing its Layer-1 blockchain. Despite the excitement around this update, Cardano price has taken a dip, leaving many investors wondering what’s next for ADA. In this article, we’ll explore the factors behind the price drop and what the future might hold for Cardano.

How has the Cardano Price Moved Recently?

ADA/USD Daily Chart- TradingView

Cardano is currently trading at $0.331756, with a 24-hour trading volume of $450.34 million, a market cap of $11.93 billion, and a market dominance of 0.57%. Over the past 24 hours, ADA’s price has dropped by 2.23%.

Cardano reached its peak price of $3.10 on September 2, 2021, marking its all-time high. On the other end, its all-time low was recorded on October 1, 2017, at $0.017354. Since reaching its ATH, the lowest point ADA has hit was $0.234392 (cycle low), while the highest price it has seen since then is $0.806108 (cycle high). The current sentiment around Cardano’s price prediction is bearish, with the Fear & Greed Index indicating a level of 26, reflecting fear in the market.

Cardano’s circulating supply is 35.96 billion ADA out of a maximum supply of 45 billion ADA. The annual supply inflation rate is 6.33%, with 2.14 billion ADA being created over the past year.

Cardano Price Drops After Chang Hard Fork Launch

Cardano’s price has fallen by more than 2.23% in the past 24 hours, even though the network just launched the Chang hard fork yesterday. This major upgrade brings significant changes to the mainnet, including new ways for users to participate in blockchain governance.

The Chang upgrade, which went live on Sunday, further decentralizes the Cardano blockchain by shifting decision-making power to ADA holders. Now, they can choose governance representatives and vote on proposals, making the network more community-driven.

Cardano Improvement Proposal 1694 (CIP-1692) introduces three user-led governance bodies: the Constitutional Committee, Stake Pool Operators, and Delegate Representatives. These groups, rather than the original entities like the Cardano Foundation, are now responsible for initiating chain upgrades or “hard forks.”

Despite the excitement surrounding this upgrade, Cardano’s price has not yet shown any positive response, remaining on a downward trend.

What’s next for Cardano Price?

Cardano’s price has shown some resilience over the past year, with a 30% increase, and it has experienced 15 green days in the last 30 days, indicating a 50% positive trading period. Despite this, the broader market sentiment around ADA remains cautious.

It’s trading below its 200-day simple moving average, suggesting that the long-term trend is still bearish. Moreover, ADA is down a significant 89% from its all-time high, which further underlines the current market challenges.

Although Cardano boasts high liquidity due to its substantial market cap, it has been outperformed by 60% of the top 100 crypto assets over the past year, as well as by heavyweights like Bitcoin and Ethereum. The yearly inflation rate of 6.33% also adds downward pressure, as the increasing supply might dilute its value over time.

Looking ahead, Cardano’s price could face continued volatility, especially given its current position below key moving averages and the broader market underperformance.

However, the recent Chang upgrade could gradually improve sentiment as more ADA holders engage in governance, potentially leading to positive price movements in the future. If ADA can break above the 200-day simple moving average, it could signal a shift toward a more sustained recovery. Still, caution is warranted, as broader market conditions and competition from other top crypto assets could limit upside potential in the near term.