- Cardano’s past hard fork events have failed to inspire a sustained price uptrend
ADA gave in to the wider market’s bearish sentiment this week, touching a week low of $0.338
As a seasoned analyst with years of experience navigating the complexities of the crypto market, I can confidently say that the upcoming Chang hard fork for Cardano presents an exciting opportunity for the network and its community. The potential for decentralized decision-making and community-run governance is a significant step forward in the blockchain industry.
In simple terms, we’re just a few hours away from a significant change for the Cardano blockchain, as the Chang hard fork is about to take place. This week, Intersect – Cardano’s online community platform where ideas are shared and discussed – confirmed the date for initiating the first phase of the technical upgrade.
On September 1st, Chang #1 will be launched on the main network. This marks a significant, unchangeable milestone in Cardano’s path towards becoming a completely decentralized system. Here, the community plays a direct role in decision-making tasks such as updating protocols and deciding where funds are allocated.
Community-run governance and decentralized decision-making
In the initial stage, we establish essential modifications to our underlying protocols, paving the way for the community’s involvement in on-chain governance. Later this year, a second phase will be rolled out, introducing additional functionalities that necessitate further testing and agreement within the community. Once Chang is implemented, it will be the Cardano community who decides the network’s future course.
This change will be carried out using Cardano Improvement Proposal (CIP) 1694, which establishes different governance frameworks for the Cardano system. In terms of the broader perspective, the Chang upgrade is slated for the final phase in Cardano’s development plan, known as Voltaire. This phase emphasizes the integration of voting and treasury systems to transform Cardano into a completely autonomous network.
Chang’s readiness metrics
In recent weeks, as we’ve drawn closer to Chang’s activation, there’s been a resurgence of hope among those actively watching the update within the financial markets. If it goes well, this upgrade could strengthen Cardano’s standing in the competitive blockchain industry and possibly impact ADA‘s market trends.
Despite reaching the required activation thresholds, full readiness isn’t achieved yet. As many as 42 exchanges have set up their systems, but 6 are still being processed, and another 10 are yet to join the queue, at the moment this was written.
Charles Hoskinson, founder of Cardano, announced in an update that they will be retiring the Genesis Keys, which were previously held by Cardano’s founding entities. This action aims to strengthen the network’s security and decentralization by eliminating any possibility of a central authority manipulating or interfering with the blockchain via special privileges or hidden means (backdoor).
ADA price rebound in September?
Since April, Cardano (ADA) has been confined within a downward sloping triangle pattern known as a falling wedge. On August 24th, the Cardano bulls made an effort to breach this bullish descending wedge, but they were unable to overcome the immediate resistance at $0.40.
For most of this week, the ADA/USDT pair has shown little movement, even though it ended the week with a robust close.
ADA was changing hands at $0.34 at press time, down 10.54% over the last seven days.
Investors are closely watching the $0.40 threshold, coinciding with the 100-day moving average (SMA), as a potentially pivotal moment. If this level is convincingly surpassed along with heavy trading activity, Cardano (ADA) could head towards the significant resistance at around $0.49, close to the 200-day SMA.
The historical trend indicates that the excitement surrounding past hard forks of ADA didn’t lead to prolonged positive effects. As a result, interest in the impending Chang event has been somewhat dampened.
In simple terms, if people around are feeling pessimistic, they might sell their ADA, making that pessimism worse (bearish trend). This increased selling could lower the price of ADA.
Should this result occur, the price of ADA might drop back towards $0.31. In past market adjustments, this figure has served as a substantial foundation.
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2024-08-31 21:12