Despite the completion of the highly anticipated Chang upgrade, Cardano has experienced a drop in price. The Chang hardfork brings several key changes to Cardano, such as on-chain voting, Delegate Representatives, enhanced smart contract capabilities, and a new governance structure with cost model improvements. Now, ADA holders have the ability to vote directly on governance issues or delegate their voting power to trusted representatives.
Current Market Situation
As of the latest data, Cardano (ADA) is down 2.7%, currently trading at $0.3335. The daily trading volume is around $307.4 million, with a market cap of $11.75 billion. Over the past 24 hours, Cardano has seen liquidations totaling $731.46K, mostly from long positions at $698.32K, indicating significant selling pressure and a downtrend.
Technical indicators show that bears are currently in control of the market. ADA is trading near the lower boundary of its Bollinger Bands, suggesting a potential oversold condition that could lead to stabilization or a minor price recovery. However, market volatility indicates the possibility of 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, showing selling momentum without reaching oversold territory.
According to analyst Crypto Yapper, Cardano’s intraday losses are part of a multi-month Falling Broadening Wedge pattern. This pattern is characterized by two descending and diverging trendlines, leading to lower lows and higher highs with increasing volatility over time. If ADA can break above the upper trendline of the Falling Broadening Wedge, it could potentially trigger a sharp reversal and drive the price higher.