Cardano (ADA) Price Struggles to Break Above Key Moving Averages, Despite Chang Hard Fork Upgrade Hype

The ADA price dropped by 1.1% in the last 24 hours to trade at $0.337. Despite the drop, ADA performs well against Bitcoin (BTC), gaining 3.8% against the number one crypto.

The price of Cardano (ADA) experienced a slight decline of 1.1% over the past 24 hours, bringing its current trading value to $0.337. However, ADA managed to secure a gain of 3.8% against Bitcoin (BTC), the leading cryptocurrency in the market. This positive performance against BTC was also observed among other major cryptocurrencies, including XRP, which gained 2.8%, and Solana, which surged by 4.3% against BTC.

A closer examination of Cardano's network health and traders' sentiment reveals contrasting perspectives on the asset. Despite the buzz surrounding the launch of the Chang hard fork, the numbers paint a different picture.

According to IntoTheBlock, the quantity of active addresses holding a balance has remained largely unchanged, hovering around 4.45 million for over a year, highlighting the network's stagnant state.

Cardano's no. of addresses with a balance have hovered around 4.45 million for over a year. Here's what's going on?

During the last cycle, Cardano experienced significant growth, positioned as a strong alternative to Ethereum. However, in the current cycle, the network faces… pic.twitter.com/WJrnAP8FQZ

— IntoTheBlock (@intotheblock) August 13, 2024

IntoTheBlock also discovered that while this metric has remained stagnant, the number of long-term holders has reached an all-time high, with over 40% of the total ADA supply being held by these entities, indicating a strong belief in the network, which could bode well for the price.

However, traders seem to hold a different view on the ADA price, as evidenced by the Coinglass Liquidation Map, which suggests a preference for bearish sentiment. At the time of writing, the cumulative long liquidation leverage amounted to $2.28 million, lower than the cumulative short liquidation leverage of $3.05 million on August 14. This imbalance points towards a greater anticipation among traders for a potential decline in the Cardano price.

The higher number of Shorts indicates that traders are betting on ADA price to decline in the short term, potentially driven by bearish sentiment surrounding the U.S. government moving Bitcoin from the Silk Road wallet.

Moreover, this assessment aligns with the observation that the ADA price is currently facing a key resistance level of $0.34, where substantial selling pressure has been encountered.

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