Cardano’s Chang Hard Fork: A Turning Point for ADA Price?

Amid the ongoing crypto correction, led by Bitcoin (BTC) price dip below $58k, Cardano (ADA) has signaled further midterm bearish sentiment. The large-cap altcoin, with a fully diluted valuation of about $14.8 billion and a daily average traded volume of around $273 million, closed last week below a crucial support level of around 33 cents.

As a result, the ADA price has been trapped in a bearish trend for the past six months. According to the latest market data, the price dropped 4.3 percent in the past 24 hours to trade at about $0.328 on Monday, September 2, during the early European session.

Cardano Ecosystem Ready for Mainstream Adoption

In preparation for the Voltaire era, which promises an enhanced decentralized ecosystem, the Cardano project announced the Chang Hard fork over the weekend. Officially dubbed the CIP-1694, the Chang Hard fork will set the pace for Cardano’s on-chain governance led by the community.

The Change Hard Fork introduces three user-led governance bodies: the Constitutional Committee, Delegate Representatives (dReps), and stake pool operators (SPOs). To ensure a seamless transition, the Chang Hard Fork will be implemented in two phases.

The first phase will introduce an interim Constitutional Committee to oversee Cardano’s governance. The second phase, which will happen in 90 days, will fully empower the new Cardano’s governance bodies.

“Once everyone is onboard and well-informed, they will be ready to participate in governance actively… I would say it is the biggest event in Cardano history, and it makes us different from many other chains,” Giorgio Zinetti, CTO of the Cardano Foundation, noted.

Web3 Powerhouse

The Chang hard fork will enhance the Cardano network to become a robust web3 ecosystem ahead. As of this report, Cardano’s web3 ecosystem had a total value locked (TVL) of about $189 million and a stablecoins market cap of around $12 million.

Some of the top DeFi projects on the Cardano network include Minswap, Indigo, Liqwid, SundaeSwap, and Djed Stablecoin.

Midterm ADA Price Expectations

From a technical standpoint, ADA price has been forming a macro megaphone consolidation since mid-March. As a result, ADA prices are likely to continue dropping in the midterm to retest the falling logarithmic trendline support.

Meanwhile, the anticipated economic shift in the United States, amid the upcoming general elections, will trigger the next phase of the crypto bull run. The altcoin industry is expected to reap more benefits as Bitcoin dominance shows early signs of imminent weekly reversal.