Cardano's ADA Price Declines Amid Upcoming Hard Fork

According to Cointelegraph, Cardano's (ADA) price has experienced a decline, reflecting traders' cautious sentiment ahead of the blockchain's first hard fork in two years. The Chang hard fork, set to go live on September 1, will introduce onchain governance to Cardano, a feature already available on other major blockchains like Solana (SOL) and Ethereum (ETH). This upgrade will allow ADA holders to elect Delegate Representatives (dReps) to vote on improvement proposals and future technical changes to the Cardano blockchain, potentially increasing the token's demand. In the past 48 hours, ADA's price has fluctuated between gains and losses. On August 30, it fell by 1.5% to $0.35, erasing nearly all the gains from the previous day. This volatility highlights traders' uncertainty about the impact of the Chang hard fork on ADA markets. Despite the upcoming upgrade, ADA has underperformed compared to the broader crypto market in 2024. The token has dropped by 45% year-to-date, while Solana and Ethereum have seen gains of 26.75% and 6.75%, respectively. Cardano's recent price movements are part of a multimonth falling wedge pattern, characterized by two descending, converging trendlines and declining volumes. Earlier in August, ADA retested the wedge's upper trendline as resistance and has since dropped 15%, including the recent 1.5% decline. The cryptocurrency may continue to fall until it reaches the wedge's apex point at around $0.26. However, falling wedges typically result in bullish reversal trends when the price breaks above the upper trendline, potentially bringing ADA's upside target to the $0.47-0.65 range by October, depending on the breakout point. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.