Convergence

Cardano

2024

Divergence

Cardano has experienced a drop in price despite the Layer-1 blockchain completing its highly anticipated&nbsp; Chang upgrade. 
The <a href="https://crypto.news/cardano-switches-to-decentralized-governance-with-chang-hardfork/" target="_blank" rel="noreferrer noopener">Chang hardfork</a> introduces key changes to Cardano, including on-chain voting, Delegate Representatives, enhanced smart contract capabilities, and a new governance structure with cost model improvements. ADA holders can now vote directly on governance issues or delegate their voting power to trusted representatives. 
At the time of writing, Cardano (<a href="https://crypto.news/price/cardano/" target="_blank" rel="noreferrer noopener">ADA</a>) was down 2.7%, exchanging hands at $0.3335 per price data from crypto.news. The crypto asset’s daily trading volume hovered around $307.4 million while its market cap stood at $11.75 billion. 
The latest drop in price comes as, in the past 24 hours, Cardano saw liquidations <a href="https://www.coinglass.com/currencies/ADA" target="_blank" rel="">totaling $731.46K</a>, with the majority being long positions at $698.32K, while short positions accounted for $33.14K. This suggests considerable selling pressure as the token remains in a downtrend. 
 You might also like: <a href="https://crypto.news/cardano-delays-chang-hardfork-for-binance-other-cex-upgrades/"> Cardano delays Chang hardfork for Binance, other CEX upgrades </a> 
Technical indicators also indicate that bears are in control, with ADA trading near the lower boundary of its Bollinger Bands, suggesting a potential oversold condition that might lead to a stabilization or minor recovery in price. Nevertheless, the volatility of the market leaves room for further declines. 
<figure class="wp-block-image size-full is-resized">
 <picture loading="lazy" decoding="async" class="wp-image-14295304" style="width: 100%;height:auto"> 
 <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/09/ADAUSDT_2024-09-02_15-02-18.png.webp"> 
 <img loading="lazy" decoding="async" width="928" height="542" src="https://crypto.news/app/uploads/2024/09/ADAUSDT_2024-09-02_15-02-18.png" alt="Cardano remains in bearish territory despite Chang hardfork - 20"> 
 </picture> 
 <figcaption class="wp-element-caption">
 ADA price, Bollinger Bands and MACD chart – Sep. 2 | Source: <a href="https://crypto.news/price/cardano/" target="_blank" rel="noreferrer noopener">crypto.news</a>
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</figure> 
The Moving Average Convergence Divergence indicates a strong selling pressure, with the MACD line positioned below the signal line, signaling a likely continuation of the downward trend. Similarly, the Relative Strength Index stands at 38.56, below the neutral threshold of 50, further indicating selling momentum without reaching oversold territory yet. 
<figure class="wp-block-image size-full">
 <picture loading="lazy" decoding="async" class="wp-image-14295302"> 
 <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/09/ADAUSDT_2024-09-02_15-25-45.png.webp"> 
 <img loading="lazy" decoding="async" width="928" height="542" src="https://crypto.news/app/uploads/2024/09/ADAUSDT_2024-09-02_15-25-45.png" alt="Cardano remains in bearish territory despite Chang hardfork - 21"> 
 </picture> 
 <figcaption class="wp-element-caption">
 ADA Aroon and RSI chart – Sep. 2 | Source: <a href="https://crypto.news/price/cardano/" target="_blank" rel="noreferrer noopener">crypto.news</a>
 </figcaption>
</figure> 
Further, the Aroon indicator points to a predominantly bearish trend, with the Aroon Down at a full 100.00%, indicating strong downward momentum, while the Aroon Up is at a lower 35.71%, showing weak upward movements. 
However, according to analyst Crypto Yapper, Cardano’s intraday losses are part of a multi-month Falling Broadening Wedge pattern characterized by two descending and diverging trendlines, indicating lower lows and higher highs with increasing volatility over time. 
<figure class="wp-block-image size-full is-resized">
 <picture loading="lazy" decoding="async" class="wp-image-14295305" style="width: 100%;height:auto"> 
 <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/09/GWX2EuNW4AAUtvD.jpeg.webp"> 
 <img loading="lazy" decoding="async" width="1524" height="858" src="https://crypto.news/app/uploads/2024/09/GWX2EuNW4AAUtvD.jpeg" alt="Cardano remains in bearish territory despite Chang hardfork - 22"> 
 </picture> 
 <figcaption class="wp-element-caption">
 Falling Broadening Wedge pattern emerging on ADA chart | Source: <a href="https://x.com/CryptoYapper/status/1830157646428586177" target="_blank" rel="">X/Crypto Yapper</a>
 </figcaption>
</figure> 
Given the nature of the Falling Broadening Wedge, if ADA can break above the upper trendline, it could lead to a sharp reversal, potentially driving the price higher. This volume spike reinforces the possibility of an approaching breakout, making it a critical level for traders to watch closely. 
 Read more: <a href="https://crypto.news/cardano-sees-highest-positive-sentiment-in-2024-despite-47-slump-in-five-months/"> Cardano sees highest positive sentiment in 2024 despite 47% slump in five months </a>

Cardano remains in bearish territory despite Chang hardfork

crypto.news

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