Cardano’s Chang Upgrade Approaches: Can ADA Break the $0.3 Stagnation?

  • ADA remains in the $0.3 price range.
  • The number of holders has remained stable in recent months.

Cardano [ADA] is about to undergo another hard fork, an event that often brings a lot of attention to a blockchain network as upgrades and new features are implemented.

However, the current sentiment surrounding ADA, as evidenced by the stable number of ADA holders, suggests that there is no significant increase in enthusiasm or anticipation among investors and users.

Cardano Prepares for Chang Upgrade

The upcoming Chang Hard Fork for Cardano, as reported by IntoTheBlock, is garnering interest because of the significant changes it promises for the network.

Historical data suggests that previous hard forks have caused reactions in the price of ADA. Similar effects can be expected this time around.

One of the critical developments with the Chang Hard Fork is the introduction of community-driven governance. This shift aims to decentralize decision-making processes, giving ADA holders more direct involvement in network governance.

Such a move is intended to increase democratic participation within the ecosystem, in stark contrast to the existing centralized governance.

Additionally, the hard fork will trigger a Constitution Convention event, an important step in formalizing the governance and operational principles of the network.

This convention will bring together various stakeholders to create a constitution for Cardano, as well as a foundational document that outlines the rights and responsibilities of all participants.

After the design phase, the proposed Cardano Constitution is presented to the community, who will then have the opportunity to vote on this crucial document.

Cardano continues to struggle

The price trend analysis for Cardano (ADA) indicated a challenging year with a notable downward trajectory. According to the price range chart, ADA has experienced a significant decline of over 41% since the beginning of the year.

At the time of writing, it was trading around $0.36, having recently dropped by over 1%. Notably, ADA took a major drop on July 4th, dropping by over 11% in just one week.

Despite this overall downward trend, there is potential for a rebound. This possibility is supported by the current position of the Relative Strength Index (RSI), below 40.

Cardano Price Trends

Source: TradingView

An RSI below this level usually indicates that an asset is oversold. This suggests that ADA is in a bear market, but could be poised for a recovery as market sentiment shifts from overly pessimistic to more balanced.

Holders remain stable

Analysis of the number of holders within the Cardano network shows a stable trend, with little variation in recent months.

At the time of writing, approximately 4.48 million wallets contain at least one ADA. This figure has remained fairly consistent, hovering around this number since the beginning of the month.

Historical data from the previous three months also supports this stability, showing that the number of holders during that period was around 4.47 million.

Cardano holders

Source: Santiment

Read Cardano (ADA) Price Prediction 2024-25

The flat trend in the number of holders suggests that the size of the Cardano community has remained relatively unchanged despite the fluctuations in the ADA price.

This could indicate that there is a solid base of long-term investors who are not affected by short-term market volatility.

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