As a seasoned crypto investor with memories of the 2017 bull run still fresh in my mind, I’ve learned to navigate through market turbulence and hype cycles with a steady hand. The recent drop in Cardano price ahead of the Chang upgrade has left many investors feeling jittery, but I remain cautiously optimistic.
Six hours prior to the Chang upgrade, the value of Cardano dropped below a vital support line, causing apprehension and doubt among investors. Despite the Chang fork being a major occurrence on the Cardano blockchain, the excitement surrounding it hasn’t been beneficial for its price. Simultaneously, Cardano’s founder, Charles Hoskinson, intends to debut a decentralized social media platform in Brazil post-X ban, raising questions about ADA‘s potential involvement within this new network.
Chang Projects ‘Sell-The-News’ Vibes on Cardano Price
In the past day, the value of Cardano has decreased by 3.4%, now being sold at approximately $0.3358. Regardless of Charles Hoskinson’s initiatives to execute the Chang hard fork, such as burning the remaining Cardano Genesis keys, the price has yet to react positively.
As a devoted Cardano investor, I can’t help but feel a sense of vindication as the Genesis keys’ functionality becomes obsolete. This move effectively weakens one of the main critiques leveled against Cardano – that it isn’t truly decentralized. Now, even the most ardent critics must concede that Cardano shines in block production and project management, demonstrating a high degree of decentralization. Cardano is, once again, paving the way for the entire crypto industry with its groundbreaking approach.
— Cardano YOD₳ (@JaromirTesar) August 30, 2024
With Cardano temporarily losing some of its features and the Chang hard fork imminently happening within a few hours, it’s poised to overtake others as the most capitalized completely decentralized blockchain. Yet, on-chain indicators hint at a contrasting market opinion.
According to Santiment’s data, the gap between the price of Cardano and its Daily Active Addresses (DAA) reached a two-month minimum on September 1, suggesting reduced network usage or activity.
This decrease, along with a persistent loss of influence, suggests decreased enthusiasm for the project, even though there’s good news about the updates.
Furthermore, the daily transaction volume in red (at $2.49 billion) outpaced green ($1.98 billion), suggesting increased selling activity among investors as the price of ADA fell. This trend typically occurs when investor sentiment sours and individuals aim to minimize their losses.
In essence, for Cardano, it seems like a situation where people are selling in response to the news of the upcoming Chang hard fork going live shortly. Some investors who purchased at higher prices in expectation of a price surge may now be choosing to liquidate their holdings.
ADA Price Could Rebound Soon
Over the past five days, it appears that the network has seen an uptick in either profits or losses due to Cardano’s price decrease. This increase in realized profits seems to indicate that the majority of ADA investors are still in a profitable position despite the price drop. Nevertheless, it’s worth noting that the recent price decline might be caused by investors who were previously experiencing losses choosing to sell their assets to minimize further losses as the price continues to fall, based on the daily profit ratio analysis.
Over the last three days, Cardano’s influence on social media has decreased. Yet, the overall sentiment remains positive, implying that even though there might be less chatter or debate about it online, the conversations that do occur are predominantly favorable. Despite this decline in social dominance, this continuous positive sentiment could signal a possible price recovery.
Currently, the price of Cardano is finding itself in a challenging situation. As excitement around it begins to dwindle, there’s a likelihood that the asset could decrease by approximately 4.8% from its current value. If market circumstances persist, there might even be an additional 8.2% drop. However, increased utility for ADA or a wider market uptrend could stimulate price increase in the future.
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2024-09-02 06:04