Cardano (ADA), a leading altcoin, is demonstrating promising signs of recovery with a potential 20% rise on the horizon. This development comes as the cryptocurrency community eagerly anticipates the upcoming Chang hard fork, a crucial update aimed at enhancing the Cardano network’s scalability and decentralization. Technical analysis shows ADA rebounding from the bottom of a falling channel, suggesting increased buyer interest in anticipation of the upgrade.
What is the Chang Hard Fork?
The Chang hard fork is designed to boost Cardano’s scalability and decentralize its governance structure. To date, 58% of Cardano nodes have upgraded to the new version v9.1.0, with just 12% more required to trigger the upgrade. This major event has generated significant interest in ADA among investors and market participants.
Why Are Investors Still in Loss?
Despite recent price recovery, data from IntoTheBlock reveals that 76% of ADA investors are still at a loss, having bought the asset at higher prices. Many investors who purchased ADA between $1.44 and $2.97 are facing losses of up to 88%. Nevertheless, sustained bullish momentum from the Chang upgrade could provide some relief to ADA holders in the upcoming weeks.
Technical Indicators and Price Levels
ADA has seen a 3.4% rise in the past 24 hours, trading at approximately $0.337, although it has dropped 16.6% over the past week. The current price movement within a falling channel suggests a corrective wave might return to the 50-day EMA, which stands at $0.3988. The nearest support level is around $0.3, with resistance at $0.3856 and $0.4, aligning with the 50-day EMA.
Indicators to Watch
Key indicators to monitor include the Relative Strength Index (RSI) at 36.07, close to the oversold region, indicating potential price recovery. The Chaikin Money Flow (CMF) at -0.07 reflects some selling pressure, though it is not excessively strong. If ADA’s price breaks above the falling channel, it could signal market strength and set new targets around $0.48, $0.50, and $0.55.
Key Takeaways for Investors
- Monitor the completion and impact of the Chang hard fork upgrade.
- Track technical indicators like RSI and CMF for potential recovery signals.
- Be aware of critical support and resistance levels, particularly around $0.3 and $0.3856.
- A price breakout above $0.45 could signify strong market momentum.
In conclusion, while Cardano shows promising recovery signals, investors need to keep a close eye on technical indicators and critical price levels to make informed decisions. The upcoming Chang hard fork could be a pivotal event that might further influence ADA’s price trajectory.