Amidst ADA metrics crunch, Cardano has other news to celebrate. Less than a week ago, the network launched Cardano node 9.1.0, ushering in the much-anticipated Chang Hard Fork upgrade.
Cardano (ADA) price is struggling to find support as it registers a further drop in market value. The United States Securities and Exchange Commission (SEC) recently dropped its complaint about ADA, Polygon (MATIC), Solana (SOL), and other tokens’ categorization as securities in the Binance lawsuit. However, this news did not have any profound positive impact on the market outlook of ADA.
Cardano Price and Technical Indicators
From all technical indications, the selling pressure is weighing down on ADA and on-chain metrics are not looking good for the digital asset. In the last 24 hours, ADA’s price has dropped by 0.56% causing the coin to trade at $0.4014. Its market cap also registered the same percentage value drop, making ADA the 10th largest cryptocurrency by market cap.
The trading volume of the coin is at $287.58 million, corresponding with a 1.86% drop in the last 24 hours. At the level, it is obvious that investors are losing interest in the coin in the short term. Should this market sentiment persist, a gaping sell-off trend might emerge.
The drop in ADA price is likely triggered by a series of lower highs and lower lows. Another catalyst is the price trading below both the 50-day (green line) and 200-day (black line) Exponential Moving Average (EMA).
Photo: TradingViewOrdinarily, the lower boundary of the descending channel and historical price action have shown that the primary support level for Cardano price is around $0.30. A continuously negative performance may trigger a 22% drop in price to find support at the yearly low of $0.3165. The next resistance level is at $0.42 and this is close to the 50-day EMA.
A stronger resistance is found at $0.50 as this is where the 200-day EMA and previous highs converge. At a level of 45.63, the Relative Strength Index (RSI) reflects a neutral stance but also leans towards the oversold territory. This underscores the possibility of a further downtrend before any price reversal takes place. Even the Chaikin Money Flow (CMF) indicator is not looking good.
Cardano CMF is at -0.07, indicating negative money flow and stronger selling pressure than buying pressure.
The Emergence of Chang Hard Fork
Amidst ADA metrics crunch, Cardano has other news to celebrate. Less than a week ago, the network launched Cardano node 9.1.0, ushering in the much-anticipated Chang Hard Fork upgrade. The node 9.1.0 came with Conway genesis file at startup, a requirement that its previous iteration node 9.0.0 did not possess.
With the Chang Hard Fork in motion, Cardano development firm IOHK can prepare to no longer be saddled with the direct responsibility of managing the seven-year-old blockchain. Instead, full control and operation will be entrusted to community members.
Additionally, Cardano has a new governance model. Based on the plan, this model is set to boost the evolution of the network into a more decentralized ecosystem
