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- Cardano Chang’s hard fork upgrade has gone live, bringing decentralized management to the network.
- However, ADA’s price has fallen due to a possible sell-the-news event.
Cardano [ADA] was trading at $0.329 at the time of writing. The price has succumbed to bearish pressure in the broader sector crypto market and fell by 3.3% in the last 24 hours.
This decline comes despite a major upgrade to the network to increase the usefulness of ADA.
Cardano Chang hard fork goes live
The Cardano network has completed the Chang hard fork upgrade. This upgrade aims to introduce decentralized governance to the Cardano ecosystem.
The new governance structure will involve a constitutional committee, delegated representatives and stake pool operators. This allows ADA holders to vote on important decisions on the network.
Cardano Foundation said,
“Today’s Chang hard fork marks a major milestone for the Cardano blockchain, ecosystem and community – fulfilling the promise of a truly self-governing, decentralized network.”
While the Chang hard fork has expanded its utility for ADA holders, the token has failed to respond positively.
Sell the news event?
The Chang hard fork upgrade turned out to be a sell-the-news event.
Trading volumes have increased by more than 60% in the past 24 hours CoinMarketCap facts. These volumes are likely the result of sales activities.
The Relative Strength Index (RSI) stood at 39 on the daily chart, indicating that sellers were in control. This index has hit lower lows over the past week, indicating buyers remained hesitant.
The RSI line also crossed below the signal line, further proving that bearish momentum remained strong.
Source: TradingView
A closer look at Chaikin money flow suggested that selling pressure as an indicator has shifted into the negative region.
The RSI and CMF saw a spike in late August as the rest of the market recovered. This showed that ADA’s upward trend was dependent on broader market sentiment.
More dips could follow for ADA if the price loses critical support at $0.324. If the level above this support is not maintained, the token could fall to the August 5 level at $0.27.
On the other hand, if traders take advantage of the dip to pile on, ADA could target the next resistance at $0.402. The return of bullish sentiment in the broader market could further support the token’s rally to $0.47.
Read Cardanos [ADA] Price forecast 2024–2025
While technical indicators are currently bearish, on-chain data via IntoTheBlock paints a bullish picture, suggesting the downtrend could be short-lived.
Source: IntoTheBlock
However, data from Coinglass reinforced the bearish thesis. ADA financing rates have turned negative for the first time in nearly a week, demonstrating the dominance of short traders.
Source: Coinglass
