Despite the completion of its Chang upgrade, Cardano has seen a decrease in price. The Chang hardfork brought significant changes to the Layer-1 blockchain, including on-chain voting, enhanced smart contract capabilities, and a new governance structure. ADA holders now have the ability to participate in governance issues directly or delegate their voting power to trusted representatives.
As of the time of writing, Cardano (ADA) was trading at $0.3335, down 2.7% from previous levels. The daily trading volume for ADA was $307.4 million, with a market cap of $11.75 billion. The recent drop in price was accompanied by liquidations totaling $731.46K in the past 24 hours, with a majority of long positions being liquidated. This indicates significant selling pressure on the token, keeping it in a downtrend.
Technical indicators point towards bears being in control of Cardano’s price movement. ADA is currently trading near the lower boundary of its Bollinger Bands, suggesting a potential oversold condition that could lead to price stabilization or a minor recovery. However, the market’s volatility leaves room for further declines. The Moving Average Convergence Divergence (MACD) indicator shows strong selling pressure, with the MACD line below the signal line, indicating a continuation of the downward trend.
Crypto Yapper, an analyst, has identified a multi-month Falling Broadening Wedge pattern in Cardano’s price chart. 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 lead to a sharp reversal and potential price increase.
Cardano’s recent price drop despite the Chang upgrade completion and new features introduced highlights the current selling pressure on the token. Technical indicators and analyst perspectives suggest that bears are still in control of the market, with potential for further declines. However, breaking above the Falling Broadening Wedge pattern may lead to a positive price reversal for ADA in the future.