Key facts:
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The upgrade is “a turning point in the history of cryptocurrencies,” according to Gambardello.
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ADA price is shown forming a new support.
The Cardano (ADA) Cryptocurrency market is trying to hold the $0.34 (USD) zone as the new support for its price. This occurs as a major upgrade to its network approaches, creating a new outlook on how its price could continue.
The USD 0.34 has worked as Bitcoin/” target=”_blank” rel=”noreferrer noopener”>endurance for ADA during the first 20 days of August until a rally of bitcoin (BTC) has led the markets higher. With this, Cardano has shown some strength, managing to stay mostly above this figure.
Due to market psychology, it is common for resistances (maximum prices due to greater supply than demand) to become supports (minimum prices due to greater demand than supply) in rises and vice versa in falls. In this sense, It is key that USD 0.34 remains the floor for ADA to recover to higher levels.
Over the past six months, ADA has been on a downward trend, recording lower and lower highs, as seen below. Its lowest point so far since then has been $0.27, a level it touched on the “Black Monday” seen in the markets in early August.
ADA price over the past six months. Source: TradingView.
Therefore, if it loses its current support and also fails to hold the USD 0.32 that served as a floor after Black Monday, it could fall back to USD 0.27. However, if demand strengthens instead, the market is likely to try to find the area around USD 0.44, which has recently served as support-resistance.
According to Cardano users, their network faces several weaknesses affecting ADA adoptionsuch as the technical complexity of the network that makes it difficult for developers to participate. Also, the slow pace of improvements and the concentration of power in its governance have been a cause for concern, something that may be alleviated with the new update.
Increased interest in Chang may benefit ADA
The Chang fork, an update that the network will have Cardano On September 1, it will no longer be managed by the company IOHK, founded by Charles Hoskinson. This will allow its governance to move from being centralized to decentralized and managed by its own community.
As CriptoNoticias reported, this update was planned for weeks before, but was postponed to give more time to the exchanges to “get their houses in order,” as Hoskinson himself put it. Therefore, the delay may have been something that affected ADA market sentiment, amidst bitcoin’s pullback.
Meanwhile, specialists such as Dan Gambardello, founder of the investment firm Crypto Capital Venture, They see the Chang fork as very relevant for the ecosystem. “It’s not just another update; it’s a real turning point in the history of cryptocurrencies,” expresses.
Gambardello says it represents a paradigm shift in how we perceive governance in the ecosystem. “Cardano could very well redefine what it means to be a leading Blockchain-based network, potentially attracting more developers, users and investors,” he says.
In this sense, he believes that Cardano will no longer be seen as just another project run by some large organization, but by its community. In his view, that is what should matter to the market. “It is not just about faster transactions or lower fees. It is about unleashing the power of true decentralization,” he emphasizes.
For the entrepreneur, this is what it’s all about: solidifying the foundation for a global financial operating system that truly works for everyone in a secure, scalable, and decentralized way. Therefore, Further traction from this Cardano upgrade narrative could be what its market needs to continue to rally.
Meanwhile, ADA remains trading 88% below its all-time high price recorded in the 2021 bull market. This is despite the recovery that the cryptocurrency has had since last year, driven by the Bitcoin rallysomething that also seems crucial to continue for Cardano to improve.
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