Cardano (ADA) Struggles Amidst FOMC Volatility Despite Chang Hard Fork Announcement
- Cardano (ADA) is struggling to build up bullish momentum despite network developments including the Voltaire upgrade launching on the network and the confirmation of the Chang hard fork before the end of June.
- The upcoming upgrade will revolutionize the network, moving from a Proof-of-Stake network into a fully decentralized governance model.
Cardano (ADA) has failed to break above resistance in the past two months despite significant developments that could reshape the network. ADA has failed to rally above $0.50 since dropping from this position in mid-April. Partly, this is due to the current market conditions which have turned bearish with market leader Bitcoin (BTC) failing to build consistent bullish momentum.
At the time of writing, ADA is trading for $0.4297 after a 1% surge in the last 24 hours. This has seen the altcoin make up part of its weekly losses, leaving ADA investors down by 6.4%. This performance reflects that of the wider market which is largely influenced by Bitcoin (BTC).
The recent poor performance has caused the altcoin to lose its prestigious top-ten ranking. With a market cap of $15.1 billion, the coin is ranked 11th after losing its 10th position to Toncoin (TON) which currently holds a $18.3 billion market cap.
Cardano investors have been optimistic about developments around the network, triggering a bullish breakout that sees the digital asset retest key resistance levels. As CNF reported, this began with the launch of the Voltaire upgrade this week.
Cardano is expected to initiate the Chang fork later this month, setting the stage for the “Age of Voltaire,” introducing new features such as treasury management, governance, and decentralized voting. Voltaire will transition Cardano’s governance from IOHK to the ADA community, leading to the network being fully decentralized and ushering in a new era for the entire blockchain ecosystem.
The development team has now revealed that the next key update is the Chang hard fork which will usher in the next key stage in the network’s evolution toward moving from a Proof-of-Stake network into a fully decentralized governance model.
Sharing details about the upcoming hard fork, Cardano founder Charles Hoskinson stated:
It looks like June will be the month that Cardano Node will reach 9.0. This means that Cardano is Chang fork-ready and waiting for 70 percent of the SPOs to install the new node. Then, a hard fork can occur, pushing Cardano into the Age of Voltaire,
The founder further revealed that this upgrade would be the most significant milestone since the launch of the network in 2017.
Based on the significance of the upgrade, many investors were optimistic that this could lead to a price rally that potentially leads to a new ADA price high. However, interest and confidence in a future rally remain relatively low.
Investors await the upcoming update to boost Cardano’s (ADA) confidence. Currently, sentiment is low, reflected by a negative long-to-short ratio. Regaining momentum is critical in the coming weeks.
Coinglass’s liquidation heatmap shows a cluster of positions above $0.45. If ADA can push prices above this level, it could gain traction and potentially break through $0.5 for the first time in months.
In the long term, this is nearly guaranteed based on the network growth, user adoption, and the robust community backing Cardano.
