Cardano Price Faces Bearish Resistance Despite Chang Hard Fork Nearing Launch
- Cardano’s anticipated Chang hard fork upgrade is edging closer to fruition but still faces potential market challenges.
- Despite bullish community sentiment, technical indicators paint a bearish scenario for ADA’s price action.
- Current data reveals only a small percentage of nodes remain to be upgraded, yet the price faces resistance hurdles.
Cardano nears a pivotal upgrade, but technical analysis indicates a bearish short-term outlook. Learn why traders should remain cautious despite community enthusiasm.
Chang Hard Fork: 3% Away From Completion
The eagerly awaited Chang hard fork is nearing the finish line, with 67% of the network nodes already upgraded to version 9.1.0. The threshold for initiating the hard fork is set at 70%, leaving only 3% of nodes to reach the required benchmark. This progress has generated significant excitement within the Cardano community, propelling optimistic discourse across various forums and social media platforms.
Market Sentiment vs Technical Analysis
Despite the buzz around the Chang upgrade, Cardano’s (ADA) price narrative isn’t aligning with market expectations. The ADA/USDT chart reveals 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 suggests strong bearish momentum, and recent attempts to breach these resistance levels have been unsuccessful.
Resistance and Support Levels
The price action shows that ADA faces formidable resistance at the $0.335-$0.35 range, a zone it has struggled to surpass. On the downside, the immediate support is identified around the $0.30 psychological level. Should the bearish trend persist, the next significant support could emerge around $0.25. Technical indicators reinforce this outlook; the Relative Strength Index (RSI) hovers near 50, denoting a neutral-to-bearish stance, while the Chaikin Money Flow (CMF) at 0.09 offers limited positive momentum.
Volume-Price Divergence: A Bearish Signal
The divergence between trading volume and price further confirms the bearish sentiment. After an initial spike in trading volume with a price drop, a gradual decline in volume as the price attempts to recover suggests a lack of robust buying interest. This volume-price discrepancy typically signals a higher likelihood of continued downside movement.
Conclusion
As Cardano inches closer to launching its Chang hard fork, traders should temper their expectations. While the community’s enthusiasm is palpable, technical indicators and overall market conditions suggest a bearish trajectory for ADA in the short term. Investors are advised to keep an eye on the critical support and resistance levels and wait for a clearer market direction before making any significant trading decisions.
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