Cardano (ADA) Price Analysis: Negative Sentiment Sets In as Chang Hard Fork Delay Impacts Investor Confidence

Cardano price began rising toward the end of last week and into the weekend. On the daily time frame, the asset surged and closed above a crucial resistance level.

Cardano price showed promising signs of recovery toward the end of last week and into the weekend. The asset surged and closed above a crucial resistance level on the daily time frame. Overcoming this barrier opens the path for ADA price to begin making significant gains.

However, a development issue may have impacted investor confidence, leading to ADA losing its bullish momentum. The Chang hard fork was once again delayed by four days.

The asset is trading at $0.3857, down 3.7% in the last 24 hours.

Negative Sentiment Is Affecting Cardano Price

Some signs of stagnation have emerged for ADA price following the Chang hard fork delay, including reduced network profitability and volume.

Data from Santiment showed that the Cardano network daily profit ratio dropped to 0.88, marking its lowest point since August 18. This observation indicates that for every ADA transaction closed in loss, 0.88 were completed in profit, suggesting that the majority of ADA on-chain traders transacted in losses.

This observation is further supported by the Network Profit/Loss (NPL) ratio, which has been dropping consecutively for the past three days, showing that recently, coins that changed addresses were sold at a net loss.

Furthermore, Coinglass data showed that Cardano open interest (OI) and price dropped in the last 24 hours by 2.21% and 3.03%, respectively.

This data suggests that traders are closing their Long positions, potentially in losses, as confirmed by Santiment’s NPL data. When traders close their Longs, they are mostly likely to open shorts.

These on-chain metrics indicate that Cardano price may be poised for a further decline over the next 24 hours, as the market sentiment for the asset has turned bearish.

However, if ADA manages to sustain above the current price until the wind blows over, investors still holding can enjoy a 78% surge in price.

ADA Price Analysis: Key Levels To Watch For 78% Spike

On the daily time frame, the ADA price chart showcases a downtrend, confined within a descending channel. Currently, the price is encountering a resistance zone around $0.40, which aligns with the upper boundary of this channel.

The 50-day EMA (green line) is positioned below the 200-day EMA (black line), further highlighting the bearish trend.

However, the price action is attempting to remain above the 50-day EMA, indicating a possible shift in momentum. Resistance for ADA price is likely to be found around $0.40–$0.42, followed by the 200-day EMA at $0.4355.

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