ADA price is displaying strength on July 26 after rising 4.45% over the last 24 hours to $0.4127. Cardano has been in a downtrend, dropping more than 60% from $0.8102 to $0.3171 between March 15 and July 5.
This drawdown has brought the total gains over the last 90 days to 10% and a decline of 30% year-to-date.
This bearish trend could soon come to an end fueled by the much-awaited Chang hard fork, which is supposed to transition the Cardano network to decentralized governance.
The latest version of the validator node, Node 9.1.0–an upgrade of Node 9.0 released on July 8–represents the first phase of the Chang era.
The hard fork will be implemented once 70% of validators have upgraded to the new node.
The Chang Hard Fork, practically finished, sets the stage for decentralized governance as we soon enter the Voltaire era of @Cardano. 🌐
Our CTO @giozzi explains the upcoming governance model evolution and the technical challenges in this article below:https://t.co/11yZlMZ0md pic.twitter.com/q7fSOCL9XE
— Cardano Foundation (@Cardano_CF) July 24, 2024
The second phase of the Chang upgrade will be initiated later in 2024. Voltaire is the final era planned for the network upgrade and is marked by the complete transition of governance from the Input-Output Hong Kong company to the Cardano community.
ADA price analysis
ADA price is currently fighting resistance from the moving averages, where the bears are expected to step in to arrest the recovery.
If the price turns up sharply from the current level, it will suggest a change in sentiment from selling on rallies to buying on dips. This will happen if the ADA produces a decisive close above the 50-day exponential moving average (EMA) currently at $0.4180.
The bulls will then try to propel the price above $0.4427 and $0.46, where the 100-day EMA and the 200-day EMA are found respectively. Such a move would initiate a rise toward the $0.5599
ADA/USD daily chart. Source: TradingView
This positive outlook is supported by the sharp rise of the relative strength index (RSI). This suggested that the buyers had begun returning to the scene.
On the downside, the value of the RSI at 49 below the midline suggested that the market conditions slightly favoured the downside. As such, if the price fails to break above the 50-day EMA, it will suggest that the bears are trying to assert their supremacy. The ADA/USDT pair could drop to the strong support near $0.35.
