Cardano Price Declines Today: What’s Behind It?

September 02, 2024 04:01 PM AEST | By Team Kalkine Media

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Cardano Price Declines Today: What’s Behind It? — Image source: shutterstock

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Cardano’s ADA price is experiencing volatility as it fluctuates between gains and losses in anticipation of the upcoming Chang hard fork. The price of ADA has recently decreased, with a notable drop of 1.5% to $0.35 on August 30, erasing nearly all the gains achieved in the preceding day. This indecision among traders reflects the uncertainty surrounding the impact of the Chang hard fork on ADA’s market performance.

Scheduled to take effect on September 1, the Chang hard fork represents Cardano’s first major network upgrade in two years. This upgrade is set to introduce on-chain governance features to {Cardano} (ADA) , allowing users to elect Delegate Representatives (dReps) who will have a role in voting on improvement proposals and future technical changes. This governance model is intended to enhance the network’s functionality, increasing demand for ADA.

Despite these developments, ADA has underperformed relative to other major cryptocurrencies in 2024. While Solana and Ethereum have seen respective gains of 26.75% and 6.75%, Cardano’s token has decreased by 45% year-to-date.

Currently, ADA’s price pattern shows a falling wedge formation, characterized by two converging trend lines descending alongside declining trading volumes. Earlier in August, ADA encountered resistance at the upper trendline of this wedge and has since fallen by 15%, including the recent 1.5% decline. The cryptocurrency may continue to decline until it reaches the wedge’s apex at approximately $0.26.

Falling wedge patterns often signal bullish reversals when the price breaks above the upper trendline. Should ADA break out of this pattern, historical technical suggests that the price could rise to the $0.47-$0.65 range by October, depending on the breakout point. This forecast hinges on the successful resolution of the wedge pattern and the subsequent market reaction to the Chang hard fork.

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