Cardano (ADA) Faces Key Resistance Despite Chang Hard Fork and Market Volatility

• Cardano (ADA) faces significant resistance despite recent network developments.
• The recent Chang hard fork upgrade has not propelled ADA prices as anticipated.
• Despite brief recovery after Bitcoin’s volatility, ADA remains in a downtrend, with a stagnant user base.

Explore the current challenges and future outlook for Cardano (ADA) amid significant market resistance and recent network upgrades.

Cardano’s Relative Performance Against Bitcoin

Despite ADA’s dip of 1.1% to $0.337 recently, it has shown a 3.8% increase against Bitcoin. This pattern mirrors gains observed in XRP and Solana, which rose 2.8% and 4.3% against BTC, respectively. However, the broader sentiment for Cardano remains muted, underscored by static user growth and network activity.

Network Activity and Investor Behavior

Analysis indicates a stagnant network despite the Chang hard fork upgrade, with the number of active wallet addresses stuck at 4.45 million over the past year. However, steadfast confidence from long-term investors, who hold 40% of ADA’s total supply, stands out as a significant positive indicator amid prevailing caution.

Expectations for ADA’s Price

Current market sentiment leans towards a bearish outlook for ADA. Coinglass Liquidation Map data shows liquidations of $2.28 million for long positions and $3.05 million for short positions on August 14, reflecting expectations of further declines. This sentiment is compounded by negative technical indicators.

Critical Support Levels and Technical Analysis

ADA is anticipated to test the crucial psychological support level at $0.3. Holding this level could potentially pave the way for a recovery. However, technical indicators such as the MACD remain in negative territory, signaling ongoing downward momentum and further potential declines.

Conclusion

In summary, Cardano is navigating a challenging period characterized by significant resistance levels and negative market sentiment. The steadfast confidence of long-term holders is a positive note, but the broader outlook remains cautious. Investors should monitor key support levels and technical indicators closely as ADA’s performance unfolds.