- Reasons for the Delay
- Community Response and Market Activity
- Potential Impact on ADA's Price
The highly-anticipated Cardano Chang hard fork upgrade is set to arrive on September 1, following a delay due to some centralized exchanges not being ready.
Reasons for the Delay
The upgrade was initially scheduled for an earlier date, but Cardano founder Charles Hoskinson announced on X that it had been postponed. According to Hoskinson, the delay was necessary because some tier-1 centralized exchanges, including Binance, were not ready to upgrade.
Community Response and Market Activity
This upgrade introduces on-chain governance, which is the first for the platform. While the ADA community is excited about the upgrade, many are proceeding cautiously, leading to decreased trading activity. According to Santiment’s data, the daily count of addresses participating in ADA transactions has decreased by over 30%, indicating a drop in demand for the altcoin.
The negative price-daily active address (DAA) divergence further confirms this cautiousness. This metric compares price movements with changes in daily active addresses and shows ADA’s -15.7% DAA divergence, signaling a weakening market and potential for further price declines.
Potential Impact on ADA's Price
Cardano traders could witness two possible price outcomes after the upgrade. If the hard fork triggers a wave of sell-offs, ADA’s price could drop to $0.027. Conversely, if the upgrade fosters an optimistic market sentiment, ADA’s value could rise significantly to $0.39 or even beyond the $0.40 mark, aligning with Cardano’s envisioned growth trajectory.
Market sentiment is a good indicator of investors' attitudes toward sell-offs. Currently, overall sentiment has turned negative. The Fear & Greed Index indicates that the market came out of 'Greed' last week, losing over 27 points to move into 'Fear' territory, suggesting investors are more inclined to sell their holdings.
In summary, the upcoming Cardano Chang hard fork upgrade is causing caution among market participants, and the outcomes could range from significant sell-offs to positive price movements.
