Cardano has trended downward in the last few months, but the upcoming network event could change its trajectory.
- ADA has remained in the $0.3 price range. The number of holders has remained stable in the past months.
Cardano [ADA] is approaching another hard fork, an event that often brings significant attention to a blockchain network as upgrades and new features are implemented.
However, the current sentiment around ADA, as indicated by the steady number of ADA holders, suggests that there hasn’t been a significant increase in excitement or anticipation among investors and users.
Cardano prepares for Chang upgrade
The upcoming Chang Hard Fork for Cardano, as reported by IntoTheBlock, is generating interest due to the significant changes it promises for the network.
Historical data suggests that previous hard forks have triggered reactions in ADA’s price. Similar effects might be anticipated this time.
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, allowing ADA holders more direct involvement in network governance.
Such a move is designed to enhance democratic engagement within the ecosystem. This contrasts sharply with the existing centralized governance.
Additionally, the hard fork will initiate a Constitution Convention event. This is a significant step in formalizing the governance and operational principles of the network.
This convention will bring together various stakeholders to draft a constitution for Cardano. Also, this will create a foundational document that outlines the rights and responsibilities of all participants.
Following the drafting phase, the proposed Cardano Constitution will be 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.
As of this writing, it was trading at around $0.36, recently dropping by more than 1%. Notably, on 4th July, ADA suffered a major decline, dropping 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.
Source: TradingView
RSI below this level typically indicates that an asset is oversold, suggesting that ADA is in a bear trend but could be primed for recovery as market sentiment may shift from overly pessimistic to more balanced.
Holders remain steady
The analysis of the number of holders within the Cardano network shows a stable trend, with little variation in recent months.
As of this writing, approximately 4.48 million wallets hold 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, indicating that the number of holders was around 4.47 million during that period.
Source: Santiment
The flat trend in holder numbers suggests that despite ADA price fluctuations, the Cardano community’s size has remained relatively unchanged.
This could imply a solid base of long-term holders not swayed by short-term market volatility.
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