Chang Hard Fork— Cardano’s Best Bet to Confirm Bullish Pattern
NOIDA (CoinChapter.com)— Cardano (ADA) has seen little price movement recently, remaining flat despite the significant advancements with the Chang hard fork. Investors expected the upgrade to boost ADA’s valuation, but the broader cryptocurrency market downturn or a cautious market approach may have kept the price around $0.30.
The Chang hard fork aims to bring decentralized governance to Cardano and enhance its infrastructure. Stake pool operators (SPOs) are upgrading to Node 9.1.0, the final version needed to initiate the hard fork, which is crucial for the upgrade’s success.
Meanwhile, Cardano founder Charles Hoskinson seems to be driving interest in the project by fueling rumors of a Cardano exchange-traded fund. The blockchain network has been struggling recently and has been tagged as a dead project.
Milestones and Features of the Chang Hard Fork
The Chang hard fork marks a key evolution for Cardano. The release of Node 9.1.0, which includes all necessary features for the hard fork, is a key milestone. A requirement of Node 9.1.0 is the Conway genesis file, now mandatory at startup. The file is essential for the transition.
Cardano’s community and founder, Charles Hoskinson, has often highlighted the hard fork’s potential. It will go live once 70% of SPOs upgrade to the new node, transferring control of the blockchain to ADA holders, similar to DeFi DAOs. The Chang Update aims to increase community involvement and more democratic control.
The upgrade includes CLI and API enhancements, a “query treasury” command, and compatibility with CIP69 and CIP119. These updates aim to improve the network’s efficiency and security.
Despite delays, the community is ready for the changes. Once the required node density is reached, the hard fork will trigger a new blockchain proposal, completing Cardano’s transition to a more decentralized system.
Bullish Pattern For Cardano, But There’s A Catch
Meanwhile, the ADA USD pair continued moving inside a bullish technical pattern called the ‘falling wedge.’
A falling wedge pattern features a pair of converging trend lines connecting lower highs and lower lows, forming a narrowing shape that slopes downward.
The pattern typically suggests that an asset’s price, while consolidating in a downtrend, is losing bearish momentum and preparing for a potential reversal to the upside. Typically, a breakout occurs in the direction of the overall trend, which, for a falling wedge, is upward.
However, the token faces stiff resistance from the confluence of the 20-week (red), 50-week (purple), and 100-week (blue) EMA trendlines. ADA, the token of a project currently out of favor with most of the community, might find it difficult to find the bullish momentum required for a breakout.
To estimate the price target of a falling wedge pattern, traders measure the widest part of the wedge at the beginning of the formation. They then project this distance upward from the point of the breakout to set a potential target.
An accompanying increase in trading volume can further confirm the reliability of the breakout. Higher volume during the breakout suggests stronger market conviction, supporting the likelihood of a successful price reversal.
According to technical analysis rules, the ADA USD pair could rally over 103% to reach the pattern’s theoretical price target of near $0.85.
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