Cardano recently underwent a Chang upgrade on its Layer-1 blockchain, bringing about significant changes such as on-chain voting, Delegate Representatives, improved smart contract capabilities, and a new governance structure. Despite these enhancements, the price of ADA has seen a decline, sparking concerns among investors and traders.
As of the latest data available, Cardano (ADA) is trading down 2.7% at $0.3335. The daily trading volume stands at around $307.4 million, with a market cap of $11.75 billion. The drop in price has resulted in liquidations totaling $731.46K in the past 24 hours, with long positions accounting for the majority at $698.32K.
Technical indicators point towards a bearish trend in the ADA market. The Moving Average Convergence Divergence (MACD) line is below the signal line, indicating strong selling pressure and signaling a continuation of the downward trend. The Relative Strength Index (RSI) stands at 38.56, below the neutral threshold of 50, further reinforcing the selling momentum. Additionally, the Aroon indicator shows a predominantly bearish trend, with the Aroon Down at 100.00% and the Aroon Up at 35.71%.
The recent price drop has brought ADA closer to the lower boundary of its Bollinger Bands, suggesting a potential oversold condition. This could lead to a stabilization or minor recovery in price. However, the volatile nature of the market leaves room for further declines. Analyst Crypto Yapper has identified a multi-month Falling Broadening Wedge pattern in Cardano’s price chart, predicting lower lows and higher highs with increasing volatility over time. Breaking above the upper trendline could trigger a sharp reversal in price.
Despite the positive developments introduced by the Chang upgrade, Cardano’s price has experienced a significant drop. Technical indicators suggest a bearish trend in the market, with selling pressure dominating. Investors and traders will need to closely monitor price movements and market developments to assess the potential for a price reversal in the future.
