- Cardano plummets by 9%.
- News of Chang Hard Fork struggles to spark a reaction.
- Despite challenging market conditions, there remains hope for ADAโs comeback.
Cardano has been wrestling with the $0.5 resistance for over two months, but each attempt has fallen flat, underscoring a persistent lack of confidence in the asset, where even major network developments like Voltaire coming to the network struggle to spark a reaction.
Cardanoโs Chang Hard Fork News Falls Flat
Cardano is poised for a monumental transformation. By the end of June, the Chang hard fork will herald the dawn of the Voltaire era, marking the network’s most important evolution yet.
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This impending upgrade aims to fulfill Cardano’s ambitious roadmap by implementing CIP-1694, which will reshape the Proof-of-Stake network into a fully decentralized governance model.
Initially, the news breathed some life into ADA, pushing its price from $0.43 to $0.45โ a 5% increase. However, optimism quickly waned as the broader crypto market turned bearish in anticipation of the US Federal Reserve meeting and inflation reports.
Before the community could fully celebrate, Cardano plunged 9% to $0.42. The catalyst for this sudden downturn was the FOMC’s retreat from its promise of three rate cuts and its reluctance to introduce even a single cut.
The volatility sparked by the FOMCโs June meeting overshadowed Cardanoโs announcement. According to Coinglass data, the market wiped out nearly $400 million since Tuesday, June 11. However, despite the challenging market conditions, there remains a glimmer of hope for ADA’s resurgence.
Cardanoโs Looming Comeback
The Chang hard fork has yet to occur. In a recent announcement, Charles Hoskinson shared that the network is waiting for 70% of its stake pool operators (SPO) to install the new node and make it official.
Once official, the new update could potentially restore investor confidence in ADA and catapult it toward liquidity. At press time, confidence in Cardano remained glaringly low, as evidenced by its significantly negative long-to-short ratio, making it crucial for the protocol to regain momentum in the following weeks.
According to Coinglassโs ADA liquidation heatmap, thereโs a concentration of positions above $0.45. If Cardano manages to fill orders above $0.45, it could gather enough momentum to continue its rally and potentially break through $0.5 for the first time in months.
On the Flipside
- For most of 2023, Cardano struggled to perform. However, in Q4, it turned the tide, closing out the year as one of the top-performing assets.
- ADAโs yearly growth has flipped negative, marking a 25% loss for the year.
- Market dynamics can be unpredictable, so it is essential to consider alternative perspectives and opinions when evaluating the potential future performance of ADA.
Why This Matters
Investor confidence in Cardano continues to wane despite major developments such as the highly anticipated Voltaire upgrade. This ongoing lack of momentum paints a concerning picture of the network’s future.
FOMC holds rates steady:
FOMCโs Rate Cut U-Turn Sparks $200M Crypto Liquidation Spree
Charles Hoskinson welcomes the age of Voltaire:
Cardano Founder Sets Stage for the Dawn of the Voltaire Era
