Cardano (ADA) Tumbles 9% Despite Looming Chang Hard Fork

FOMC-fueled crypto market turmoil overshadows Cardano’s major milestone.

Girl in shock with her mouth open, cardano coins sliding down her tongue. Technology energy with cardano coins in the air.
Created by Kornelija Poderskytė from DailyCoin
  • Cardano plummets by 9%. 
  • News of Chang Hard Fork struggles to spark a reaction. 
  • Despite challenging market conditions, there remains hope for ADA’s 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. 

Cardano’s 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.

Sponsored

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 $0.45– 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 FOMC’s June meeting overshadowed Cardano’s 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. 

Cardano’s 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. 

Sponsored

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 Coinglass’s ADA liquidation heatmap, there’s 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.
  • ADA’s 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:
FOMC’s 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

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.