Cardano price sees short-term gains after Chang’s hard fork

Cardano's (ADA) long-awaited Chang'e hard fork has made some owners profit in the past 24 hours. Transactions involving altcoins have seen more gains than losses during that period.

However, this may be temporary as the altcoin hit an August 5 low.

Cardano's upgrade puts holders at a premium.

As previously reported, the Cardano Chang hard fork that happened on September 1st was “selling the news”. The whale investors sold large amounts of ADA after the reform was implemented, reducing their holdings, putting downward pressure on the price.

However, the tide has turned as altcoin-related daily transactions have started to turn a profit. This is reflected in ADA's positive daily trading volume versus profit and loss. On Thursday, this stood at 1.15, which means that for every ADA transaction that ended in a loss, 1.14 transactions returned a profit.

The reason for this is not far. ADA prices have declined over the past 24 hours, giving traders an opportunity to sell for a profit if they buy at low prices. ADA is currently trading at $0.32, indicating a 0.39% increase in the timeframe.

While this may spur renewed demand for ADA, traders should understand that the coin's negative daily active address (DAA) divergence suggests that the current uptrend is short-lived. This indicator, which tracks whether relative network activity is supporting asset price movement, is -30.93% at press time.

Read more: Cardano (ADA) Price Prediction 2024/2025/2030

While the DAA variance is negative when asset prices increase, it suggests that only a few unique addresses are actively trading. This is often interpreted as a warning sign that bullish speculation or trading by small investors or whales is artificially increasing the value of the asset.

ADA Price Prediction: The problems are far from over.

Even though the ADA has recorded some contraction in the last 24 hours, it is still being followed by bias. This is evident from the parabolic stop and reverse (SAR) indicator position. At the time of publication, these are set above the ADA values.

This indicator helps identify the asset's direction and potential reversal when placed in this manner, indicating continued market decline. This indicates that property values ​​are declining, and the downward trend is likely to continue.

Read more: How to buy Cardano (ADA) and everything you need to know

If this trend continues, ADA price may revisit the August 5 low of $0.27. However, if the altcoin sees a significant surge in renewed demand, the price could rise to $0.39, undermining the bearish assumptions above.