Despite the completion of the highly anticipated Chang upgrade, Cardano has experienced a drop in price. The new features introduced by the Chang hardfork, such as on-chain voting and enhanced smart contract capabilities, were expected to bring positive momentum to the project. However, at the time of writing, Cardano (ADA) was down 2.7%, trading at $0.3335.
The recent drop in price was accompanied by significant selling pressure, with liquidations totaling $731.46K in the past 24 hours. The majority of these liquidations were long positions, indicating a bearish sentiment among investors. Technical indicators also point to a bearish trend, with the Moving Average Convergence Divergence and Relative Strength Index signaling strong selling pressure.
Despite the current downward trend, there may be potential for a reversal in the near future. Analyst Crypto Yapper has identified a multi-month Falling Broadening Wedge pattern in Cardano’s price chart. This pattern, characterized by lower lows and higher highs with increasing volatility, suggests that if ADA breaks above the upper trendline, it could lead to a sharp reversal in price.
Volatility and Uncertainty
The market volatility leaves room for further declines in Cardano’s price. The Aroon indicator points to a predominantly bearish trend, with the Aroon Down at 100.00%. While there may be opportunities for a minor recovery, the overall outlook remains uncertain.
Cardano’s recent price drop following the Chang upgrade highlights the unpredictable nature of the cryptocurrency market. While technical indicators suggest a bearish trend, the potential for a reversal remains if ADA can break above key resistance levels. Investors should proceed with caution and closely monitor market developments to make informed decisions regarding their Cardano holdings.
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