- Summary:
- Cardano price has gained more than 17 percent in the last week ahead of the much-anticipated Chang Hard Fork transition.
Cardano price stayed on the uptrend on Monday to trade at $0.437 after rising by 1.1 percent as of this writing. ADA price has been on an upbeat momentum for the last week, during which it has gained 17 percent. While the $0.50 psychological mark is still a long way off, the recent rally signals a strong momentum that could help alleviate return investor interest in the asset, considering that it hit its year-to-date lows only ten days ago.
Notably, Cardano’s gains started a few days ago in the thick of a wider market downturn. However, the crypto market made significant gains over the weekend, solidifying the likelihood of further gains by ADA. The momentum on Cardano is fueled by the positive sentiment around its forthcoming Chang Upgrade, which will significantly alter its governance structure. That said, there has also been an increase in giveaway scams targeting unsuspecting ADA holders ahead of the upgrade. Cardano Founder, Charles Hoskinson, announced a week ago that the upgrade to Node 9.0.0 hard fork, which is essential for the Chang upgrade was nearly complete.
According to Hoskinson, the upgrade will make Cardano the “most scalable” ecosystem within 24 months. On the downside, however, ADA price faces the risk of profit-taking after its recent gains. The asset underperformed most of the leading altcoins for the better part of the last two quarters, and the return to profitability could prompt some investors to lock in profits, which could put ADA under pressure.
Technical analysis
The momentum on ADA price favours a continuation of the uptrend if the price stays above 0.435. The upward momentum will likely encounter the first resistance at 0.438, but a break above that mark could result in a stronger upside push to test the next barrier at 0.440. Conversely, the sellers could take control if Cardano price moves below 0.435. In that case, the first support could come at 0.433, but extended control by the sellers could breach that mark and invalidate the upside narrative. Also, it could strengthen the downside momentum to test the next support at 0.430.
