Cardano’s Chang Hard Fork: A Bullish Outlook in the Making
Cardano (ADA) has remained relatively stable in terms of price movement despite the recent Chang hard fork. Investors had high hopes for the upgrade to positively impact ADA’s value, but external factors such as the broader cryptocurrency market downturn or a cautious market sentiment have kept the price hovering around $0.30.
The Chang hard fork is a significant step for Cardano, aiming to introduce decentralized governance and enhance its infrastructure. Stake pool operators are currently in the process of upgrading to Node 9.1.0, the final version necessary for the successful implementation of the hard fork.
Amidst the upgrade process, Cardano’s founder, Charles Hoskinson, has been generating interest in the project by teasing the possibility of a Cardano exchange-traded fund. Despite recent struggles and being labeled as a stagnant project, the blockchain network is showing signs of resurgence.
Key milestones and features of the Chang Hard Fork are essential for Cardano’s evolution. The release of Node 9.1.0, which includes all the required features for the hard fork, marks a crucial development. The introduction of the Conway genesis file as a mandatory requirement at startup is essential for a smooth transition.
The community and Charles Hoskinson have emphasized the potential impact of the hard fork, which aims to transfer control of the blockchain to ADA holders, similar to DeFi DAOs. The Chang update is designed to foster community involvement and enhance democratic control over the network.
Despite some delays, the community is prepared for the changes ahead. Once the necessary node density is achieved, the hard fork will initiate a new blockchain proposal, leading to Cardano’s complete transition to a more decentralized system.
On the technical front, the ADA USD pair is currently forming a bullish pattern known as the ‘falling wedge.’ This pattern, characterized by converging trend lines with lower highs and lower lows, suggests a potential reversal to the upside after a period of consolidation in a downtrend.
While the pattern indicates a bullish outlook for ADA, the token faces resistance from key trendlines such as the 20-week, 50-week, and 100-week EMA. These hurdles, combined with the project’s current lack of popularity, may pose challenges for ADA to gain the necessary bullish momentum for a breakout.
Technical analysis suggests that the ADA USD pair could potentially rally over 103% to reach a target price of around $0.85 if the pattern plays out as expected. Confirmation of the breakout through increased trading volume would further strengthen the likelihood of a successful price reversal.
In conclusion, Cardano’s Chang hard fork presents an opportunity for the project to revitalize and move towards a more decentralized future, despite the challenges it may face in the short term.