Cardano Price Analysis: How Chang Hard Fork Can Drive ADA Rally to $0.6

Cardano Price Analysis: ADA, the native cryptocurrency of the Cardano ecosystem has been rising for three consecutive days amid broader market recovery. The Bitcoin price reversal from $55000 and resilience to the continued selling from the German government has eased supply pressure from the market. The renewed recovery has uplifted the ADA price to $0.384, heading close to a bullish breakout from a major reversal pattern.

Also Read: Institutional FOMO On Spot Bitcoin ETF As German Govt Continues BTC Sell-off

Cardano Price Analysis: Is a Breakout from the Wedge Pattern Imminent?

Over the past four months, the Cardano price has witnessed a steady downtrend amid the wedge pattern formation. The two converging trendlines plunged the ADA price from $0.81 to $0.357, registering a loss of $55.9%. 

However, in theory, this pattern indicates the maturity of bearish momentum which eventually bolsters buyers to regain control. Along with market recovery, the upcoming hard fork, bolstered by the altcoin, rebounded from the pattern’s support at $0.33 to $0.38 registering a recovery of 16%.

Cardano is gearing up for its next major update, the Chang Hard Fork, which marks a significant step towards decentralized, community-run governance. The hard fork requires approval from 70% of stake pool operators after their testing and updating phases. 

Cardano is preparing for the Chang Hard Fork, set to occur by the end of July.

It’s worth noting that before its previous hard fork in 2021, $ADA surged 130%, from $1.35 to $3.10 in just a month. pic.twitter.com/E8zTEgZM6k

— IntoTheBlock (@intotheblock) July 6, 2024

Historically, such updates have had substantial impacts on Cardano’s token, ADA; for instance, the Alonzo hard fork in 2021 spurred a remarkable 130% surge in ADA’s price from $1.35 to $3.10 within a month. This impressive performance underscores the potential impact of major network upgrades on Cardano’s market value. 

During a Sunday livestream, Cardano founder Charles Hoskinson announced that the network’s upgraded node, referred to as node v9.0, is prepared for release. This crucial update is scheduled to roll out next week, provided there are no unforeseen issues.

Amid the development, the ADA price is more likely to breach the upper boundary of the wedge pattern. A potential breakout will signal the early sign of trend reversal and provide buyers with suitable support.

A post-breakout rally could drive the Cardano price to $0.52, followed by $0.62.

Technical Indicator:

• RSI: A notable higher-low formation in the daily Relative Strength Index slope marks the increasing accumulation trend in the asset during a market dip
• EMAs: The 0-and-50-day Exponential Moving Average as dynamic resistance indicates the near-term trend is active bearish.

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