Cardano Price Prediction 2024: Will the Upgrade Spark a Rally to $1?

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As 2024 unfolds, the cryptocurrency market continues to face both volatility and excitement. Cardano (ADA), a popular layer 1 blockchain, once again caught the eye with its Chang hard fork upgrade. With major developments underway, many are wondering if this major upgrade can push the price of Cardano to the $1 mark. In this analysis, we dive into the current state of the Cardano market, its technical performance, and predictions of its future trajectory.

The Current State of the ADA: A Gradual Rebound

At the beginning of the last quarter of 2024, the ADA started to show signs of life and bounced off local lows. Although the bulls seem poised to strike, buying pressure remains below average. Currently, Cardano is seeing a modest 4% weekly growth with a marginal increase in market cap of 0.13%. Despite this, trading volume fell by 3.71%, indicating a potential lack of momentum.

Interestingly, market sentiment remains largely positive. With bullish expectations above 87% and a neutral fear-greed index of 48, traders are cautiously optimistic. However, the key challenge lies in ADA’s ability to break out of the current price range and deliver a sustainable rally.

Technical Analysis: Navigating Resistance Levels

Technically, ADA is still locked in a bearish chart, trying to break key resistance levels. The 200-day and 50-day moving averages serve as major barriers and a break of either of these levels will confirm further directional movement. Currently, the 50-day exponential moving average (EMA) is $0.3644, while the 200-day EMA is $0.4107.

One key indicator, outstanding volume (OBV), suggests a bearish turn may be in play, pointing to potential further declines before a substantial recovery occurs. If ADA falls below $0.35, this may trigger fresh buying pressure that will allow it to move back to $0.40.

Chang Update: A Step Towards Decentralized Governance

Cardano’s recent Chang hard fork represents a significant leap forward for blockchain. This upgrade moves Cardano towards decentralized governance, giving ADA holders more power over the future of the network. Key governance decisions, including the election of representatives and voting on major development proposals, will now be community-driven. This marks the beginning of Cardano’s “Voltaire era”, a phase aimed at achieving full decentralization.

The governance framework introduced through CIP-1694 creates three community-led bodies: the Constitutional Committee, Delegates (dReps) and Mutual Fund Operators (SPOs). This model aims to create a transparent, decentralized governance system where stakeholders can actively participate in shaping the future of the network.

The Chang update takes place in two phases. In the first phase, a provisional constitutional committee for the supervision of the administration of public affairs was temporarily established. In the second phase, expected within 90 days, these administrative bodies will be fully empowered, leading to greater decentralization and community involvement.

Outlook: Can Cardano Rally Soon?

While the Chang upgrade has strengthened Cardano’s position in the blockchain space, its price impact has been minimal so far. However, investor optimism about the future of the ADA has increased. Many expect Chang’s upgrade to mitigate regulatory risks by aligning Cardano with the decentralized ethos of the broader blockchain industry.

Cardano’s position as a leader in decentralized layer 1 blockchain is becoming more and more established, and the transition to on-chain governance could be the catalyst that ADA needs for future growth. This milestone increased the utility of the token, and if the network continues to evolve in this direction, investor confidence and liquidity may return.

Where is Cardano headed next?

When it comes to price, Cardano is at a crucial point. ADA remains trapped in a descending parallel channel, trying to break the resistance levels. Indicators such as +Di and -Di, which crossed almost bearish, showed signs of recovery, suggesting that ADA could continue to consolidate or face a minor decline.

Key support levels include $0.3213, $0.2948 and $0.2519, while resistance is at $0.4071, $0.4336 and $0.4765. If ADA can hold support above $0.35 and attract fresh liquidity, a recovery above $0.40 is possible. A break of this resistance could open the way for further growth.

Cardano price prediction for the end of 2024

As we enter the final quarter of the year, historical trends suggest that markets tend to be bullish. If ADA can sustain a horizontal consolidation, it could see a significant rally by the end of 2024. Many analysts predict that Cardano will test resistance at $0.40 and possibly break higher if market conditions improve.

However, it is worth noting that active addresses on the Cardano network are falling, signalling that a price drop could precede another rise. Investors should watch closely for signs of a breakout or breakdown in the coming weeks.

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Disclaimer: Crypto products are unregulated as of this date in India. They could be highly volatile. At Unocoin, we understand that there is a need to protect consumer interests as this form of trading and investment has risks that consumers may not be aware of. To ensure that consumers who deal in crypto products are not misled, they are advised to DYOR (Do Your Own Research).

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