Cardano remains in bearish territory despite Chang hardfork

Despite completing the highly anticipated Chang upgrade of its Layer-1 blockchain, Cardano’s price has fallen.

The Chang hardfork brings significant changes to Cardano, including a new governance structure that includes on-chain voting, Delegated Representatives, enhanced smart contract capabilities, and cost model improvements. ADA holders can now vote directly on governance issues or delegate their voting powers to trusted representatives.

At the time of writing, Cardano (ADA) was down 2.7% and changing hands at $0.3335, according to price data from crypto.news. The crypto asset’s daily trading volume was hovering around $307.4 million, while its market cap was $11.75 billion.

The latest drop in price comes as Cardano saw liquidations totaling $731.46K in the last 24 hours, the majority of which were long positions of $698.32K while short positions accounted for $33.14K. This suggests significant selling pressure as the token remains in a downtrend.

Technical indicators also suggest that bears are in control, with ADA trading near the lower boundary of the Bollinger Bands, suggesting a possible oversold situation that could lead to a stabilization or a minor recovery in prices. Still, the volatility of the market leaves room for further declines.

ADA price, Bollinger Bands and MACD chart – September 2 | Source: crypto.news

Moving Average Convergence Divergence indicates strong selling pressure, with the MACD line positioned below the signal line, indicating a possible continuation of the downtrend. Similarly, the Relative Strength Index stands at 38.56, below the neutral threshold of 50, indicating selling momentum without yet reaching the oversold territory.

ADA Aroon and RSI chart – September 2 | Source: crypto.news

Also, the Aroon indicator is predominantly indicating a bearish trend; Aroon Down is at 100.00% indicating strong downward momentum, while Aroon Up is at 35.71% indicating weak upward movement.

However, according to analyst Crypto Yapper, Cardano’s daily losses are part of a months-long Falling Expanding Wedge pattern characterized by two descending and diverging trendlines that indicate lower lows and higher highs amid increasing volatility over time.

Falling Extending Wedge pattern emerging on ADA chart | Source: X/Crypto Yapper

Given the nature of the Falling Expanding Wedge, if ADA can break above the upper trendline, it could lead to a sharp reversal and potentially push the price even higher. This increase in volume strengthens the possibility of an impending breakout, making it a critical level that traders should watch closely.