Cardano’s Chang hardfork: A catalyst for ADA price action?

As a seasoned researcher with years of experience in the crypto market, I’ve witnessed numerous hardforks and their impact on various projects. The upcoming Chang hardfork for Cardano [ADA] is no exception. While it might not directly influence ADA’s price performance due to its focus on network infrastructure changes, it certainly signifies an important step towards a fully community-controlled governance model.

As the much-anticipated Chang hardfork approaches for Cardano [ADA], there’s a buzz of discussion among cryptocurrency enthusiasts. Let’s explore the reasons behind this excitement and potential effects on ADA’s market behavior.

Before we dive into the Chang hardfork, it is worth noting that this is not the first Cardano hardfork. That designation is for the Shelly hardfork in 2020, which allowed the network to become decentralized.

As a seasoned crypto investor, I’ve witnessed numerous hard forks throughout my journey. Among them, two stand out: the Vasil hard fork that occurred in 2022, and the Alonzo hard fork which took place in 2023. The latter was particularly significant as it introduced the capability to use smart contracts within the system.

Through the Chang hardfork, the Cardano network can adopt a decentralized governance structure. This shift will enable the network to be entirely managed and governed by its community members.

The primary advantage of this modification is that it enables the Cardano network to adopt a more distributed architecture, which implies greater decentralization. Recent news from the Chang hardfork indicates that exchanges are now making preparations for this update.

Coinbase and Bitfinex were among the first exchanges to initiate the process.

Will the Chang hardfork affect ADA’s price action?

The Chang hardfork mainly involves making adjustments to Cardano’s (ADA) underlying network structure. Consequently, these changes may not necessarily influence ADA’s immediate price trends directly.

Nevertheless, it will represent an achievement in line with Cardano’s roadmap.

Although the likelihood of the Chang hardfork impacting ADA is minimal, there could potentially be some anticipation surrounding this occurrence. Following the selling pressure it faced in Q2 2024, ADA has been making efforts to rebound. Currently, it’s trading at $0.40.

Cardano’s Chang hardfork: A catalyst for ADA price action?

As an analyst, I’ve observed a significant reduction in sell pressure for Cardano (ADA) over the past fortnight, following its recent correction. This trend is clearly reflected in the Moving Average Convergence Divergence (MACD), suggesting relatively low selling volume. If this trend persists, it could potentially favor ADA bulls in the first week of August.

Over the past month, there’s been a noticeable decrease in significant transactions from major addresses, as observed in the most recent data from the blockchain.

Other than a short span from July 7th to July 10th, which aligns with the temporary surge that persisted till mid-July, there’s been an uptick in significant transaction activities (transactions exceeding $100,000) once more.

Cardano’s Chang hardfork: A catalyst for ADA price action?

An increase in significant transactions could hint that ‘whales’ might be planning something, but it doesn’t automatically tell us whether they are buying or offloading these assets.

It was found, through further examination, that the number of long-term HODLers (those holding for over a year) increased slightly, going from approximately 3.13 million to 3.18 million by July.

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During the past month, there was a significant decrease in the number of traders, suggesting a shift towards long-term holding (HODLing) rather than quick trades.

Perhaps a sign that ADA bulls might be ready to take charge once again.

2024-07-31 10:15

Will the Chang hardfork affect ADA’s price action?

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