Cardano price increased over the last 12 hours following the successful completion of the Chang hard fork. The network officially ushered in decentralized governance, which gives the users of the network 100% ownership of the chain and allows them to decide the direction it takes. Cardano Founder and developers have received accolades from crypto experts on the bold move, while Ethereum came under heat for remaining mostly centralized.
Cardano Price After Chang Upgrade
In the hours following the Chang upgrade, the ADA price surged 2.45% before retracing shortly and moving higher. Overall, the Cardano price is up 3.23% from its weekly bottom on September 2.
Data from Santiment shows that the network realized profit/loss increased on August 27, while the price declined in the same period, indicating that investors might have been selling their assets to realize profits.
The increase in realized profits suggests that many investors are still in profit despite the price drop. This is because of the previous surge in price that peaked on August 24 at $0.40.
Coinglass data shows futures traders are entering longs in the daily timeframe, which suggests that they are optimistic that Cardano price will move higher.
Additionally, the daily and weekly Cardano Relative Strength Index (RSI) hit a low of 42 and 40, respectively, showing that Cardano is still in the neutral zone but slightly below the mid-level.
Can ADA Price Outdo ETH and Layer 2s?
Following the launch of Chang Hard Fork, crypto experts have taken X to compare Cardano with Ethereum and other Layer 2 solutions. According to Justin Bons, the founder and CIO of Cyber Capital, the promise that L2s will decentralize in the future must be improved.
1/9) Promising to “decentralize” in the future is not good enough!
As all major L2s can steal & censor user funds right now!
All while scalable L1s do everything better than L2s by being faster, cheaper, easier, & more secure
L2 centralization is a slippery slope to nowhere
— Justin Bons (@Justin_Bons) September 2, 2024
Cardano has outperformed Optimism (OP), Arbitrum (ARB), and Polygon (MATIC) combined for the last three months.
Now that Cardano is a decentralized network, the development rate may surge as the community unites toward building a robust chain. While Ethereum’s mainnet enjoys over 800,000 active validators, Optimism, and Arbitrum rely on a single party, the Sequencer, for block production.
The Cardano price has formed a falling wedge on the 4-hour timeframe, threatening to break out. This breakout could lead to an 18% price surge, pushing past the 50-day exponential moving average (EMA) to the $0.40 target, where the first resistance level lies. If the price surpasses this resistance, it could extend gains by 11% to $0.44, breaking above the 200-day EMA and shifting the trend from bearish to bullish.
Cardano price analysis chart
However, if the Cardano price fails to break out above the falling wedge, it may signal market weakness, potentially dropping further to $0.3132 and $0.2425, where the next support levels are located.
The Cardano Chang hard fork has earned the trust of most investors and crypto experts. While the price is slowly reacting to this development, more volume may be needed to confirm the breakout.
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