Why is Cardano (ADA) price up today?
The ADA price is rising today as investors are excited about Cardano’s forthcoming hard fork. Cardano $0.37 is showing strength, increasing 8% in the previous 24 hours to trade at $0.3677 on August 21. This price increase has seen ADA recuperate all of its losses between August 4 and August 5, indicating a potential shift in market opinion towards the layer-1 coin.
Cardano founder reveals Chang Hard Fork is “most consequential”
ADA’s gains come after Cardano founder Charles Hoskinson’s update on the blockchain’s progress and the planned Chang hard fork. In his last podcast on August 21, Hoskinson discussed the significance of the long-awaited Chang hard fork, which is set to launch on August 27.
Reflecting on the Cardano ecosystem’s problems and successes over the last decade, Hoskinson stated that the project involved a team of devoted individuals from over 25 nations that generated the design SIP-1694.
Hoskinson believes that the next hard fork will have a significant impact on blockchain history.
“This is the most consequential because this unlocks the most advanced governance stack in the history of the cryptocurrency industry.”
According to him, the Chang hard fork will incorporate principles such as liquid democracy and a constitutional republic.
Historical performance suggests that ADA’s price could rise significantly ahead of the upgrade. In the month leading up to its most recent big upgrade in 2021, ADA increased 130% from $1.35 to $3.10. This past performance has fuelled speculation that the imminent Chang hard fork could catalyze a big price surge for ADA, thus explaining today’s price behavior.
ADA’s funding rate turns positive
Coin glass data shows that ADA’s derivatives financing rate went negative on August 21. The metric is currently back in the positive zone, at 0.0047%, showing a growing appetite for long holdings.
This shift in market mood generally occurs following major price swings, such as the 7% increase in ADA’s price during the last four hours. Additional data from market tracker Coinmarketcap shows that ADA’s trading volume has surged by 51.6% in the last 24 hours to $348 million.
The graphic below depicts a detailed breakdown of trading activity on the top ten exchanges, demonstrating that Binance (featuring the ADA/USDT pair) accounted for 11.5% of this volume, followed by HTX (4.67%) and By Bit (4.5%), among other exchanges.
The significant increase in ADA trading volume reflects renewed interest and activity in Cardano, implying that traders are keenly following its price moves.
The technical setup shows a developing positive divergence between ADA’s price and the relative strength index (RSI) on a daily basis.
Notably, ADA’s price reached lower highs between July 28 and August 20, as illustrated in the chart below. However, throughout the same period, its daily RSI increased, hitting new highs. According to technical analysis, a divergence between falling prices and increasing RSI suggests strength in the current rally, pushing traders to purchase more on local dips.
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