Coinspeaker
Is Cardano (ADA) Ready for Breakout as It Enters Voltaire Era?
Cardano, one of the leading Proof-of-Stake (PoS) blockchains, is entering a critical phase that could set the stage for a major price movement for its native token ADA. Since the network transitioned into the Voltaire era on September 1, several developments have pointed to the possibility of a breakout for ADA.
As of now, ADA has seen a modest 1% increase over the past 24 hours, trading at $0.3245, with a market capitalization of $11.6 billion. Over the past year, ADA has gained 26%, though it has yet to experience a major breakthrough. However, recent trends within the Cardano ecosystem suggest that the token may soon chart its own path, independent of broader market conditions.
The Relative Strength Index (RSI) for the ADA price action reads a value of 38.15, which confirms that the sellers are currently dominating the market, and the gradient of the line suggests that lower prices might follow in the short term.
On the other hand, the chart above also confirms that the downtrend of the Cardano token might continue for a while as the buying volume is quite low.
Potential Rise in Demand
A major milestone in Cardano’s evolution is the recent activation of the Chang Hard Fork, which marks the start of on-chain governance under the Voltaire era. With this upgrade, Cardano as a blockchain has shifted from a centralized governance model to a decentralized system, giving ADA holders direct influence over protocol changes.
One of the key tools introduced as part of this upgrade is the GovTool, which allows any community member to register as a dRep and delegate their votes. Moreover, users can now review live governance actions and cast their votes directly by connecting their native wallets.
Importantly, participation in governance requires holding ADA, a trend that could drive demand for the token and result in bullish momentum.
The Cardano Chang Hard Fork will be implemented in two phases. The first phase, already underway, involves the formation of an interim Constitutional Committee that will oversee governance decisions, limiting the power of earlier committees. The second phase, set to occur in the next 90 days, will transfer governance control to newly empowered bodies.
Additional tools, including a new explorer for this decentralized framework, are also expected to be released in the near future.
Cardano’s founder, Charles Hoskinson, recently reflected on the challenges and triumphs he has faced while working on the protocol. He acknowledged the emotional rollercoaster that comes with building a decentralized system in over 100 countries and addressed the criticisms the blockchain has faced. Despite these hurdles, Hoskinson remains confident that Cardano’s continuous upgrades will enhance its capacity and strengthen its position as a leader in blockchain innovation.
Is Cardano (ADA) Ready for Breakout as It Enters Voltaire Era?
