Cardano recently underwent the highly anticipated Chang upgrade on its Layer-1 blockchain. This update brought significant changes to the platform, including on-chain voting, Delegate Representatives, improved smart contract capabilities, and a new governance structure with cost model enhancements. Despite these advancements, Cardano (ADA) has seen a decrease in price, triggering concerns among investors.
At the time of writing, Cardano’s price was down by 2.7%, trading at $0.3335 per token. The daily trading volume was around $307.4 million, with a market cap of $11.75 billion. The recent price drop led to liquidations totaling $731.46K in the past 24 hours, with most liquidated positions being long at $698.32K. This indicates significant selling pressure on the token, contributing to its downtrend.
Technical indicators suggest that bears are currently dominating the market. ADA’s price is nearing the lower boundary of its Bollinger Bands, hinting at a potential oversold condition that could result in either stabilization or a minor price recovery. The Moving Average Convergence Divergence (MACD) line is below the signal line, indicating strong selling pressure and the likelihood of further downward movement. The Relative Strength Index (RSI) stands at 38.56, below the neutral threshold of 50, reinforcing the selling momentum. The Aroon indicator also points to a predominantly bearish trend, with Aroon Down at 100% and Aroon Up at 35.71%.
Despite the current market conditions, analyst Crypto Yapper believes that Cardano’s intraday losses are part of a multi-month Falling Broadening Wedge pattern. This pattern is characterized by two descending and diverging trendlines, signaling lower lows and higher highs with increasing volatility over time. Should ADA manage to break above the upper trendline, it could trigger a sharp reversal, potentially driving the price higher.
While the Chang upgrade has introduced several promising features to the Cardano blockchain, the recent price drop underscores the volatility of the cryptocurrency market. Investors should carefully monitor technical indicators and expert analyses to make informed decisions regarding their ADA holdings. As the market dynamics continue to evolve, Cardano’s price movements will be crucial to watch for potential trading opportunities.