Cardano Price Encounters Bearish Resistance as the Chang Hard Fork Approaching Completion
The much-anticipated Chang hard fork is nearing completion, with 67% of network nodes upgraded to version 9.1.0. The hard fork activation threshold is set at 70%, leaving just 3% of nodes needing to hit the benchmark. This progress has sparked significant excitement within the Cardano community, leading to optimistic discussions across various platforms.
ADA’s Price Action Amid Chang Hard Fork Upgrade
Despite the positive developments surrounding the Chang upgrade, Cardano’s (ADA) price performance does not align with market expectations. The ADA/USDT chart indicates a persistent downtrend, with the price consistently trading below its 50-day and 200-day exponential moving averages (EMAs) at $0.3519 and $0.389, respectively. This trend indicates strong bearish momentum, with recent attempts to breach these resistance levels proving abortive.
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The price action reveals that ADA encounters substantial resistance in the $0.335-$0.35 range, struggling to surpass this zone. On the downside, the immediate support is identified around the $0.30 psychological level. If the bearish trend continues, the next significant support could be around $0.25. Technical indicators support this outlook, with the Relative Strength Index (RSI) sitting near 50, signaling a neutral-to-bearish stance, and the Chaikin Money Flow (CMF) at 0.09 offering limited positive momentum.
The disparity between trading volume and price further reinforces the bearish sentiment. An initial spike in trading volume accompanied by a price drop, followed by a gradual decline in volume as the price attempts to recover, suggests a lack of strong buying interest. This volume-price discrepancy typically indicates a higher likelihood of sustained downward movement.
Final Thought
As Cardano approaches the launch of its Chang hard fork, traders should moderate their expectations. While there’s palpable enthusiasm within the community, technical indicators and overall market conditions point toward a bearish trajectory for ADA in the short term. Investors are advised to monitor critical support and resistance levels and await a clearer market direction before making substantial trading decisions.
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