The Cardno price is trading at $0.3926, up 2% over the last 24 hours. The layer-1 token has been sealed in a downtrend, recording 11% and 33% losses over the last week and 90 days, respectively.
However, the ADA price displays strength, a key technical indicator that suggests potential momentum for an upward rally.
The daily chart below reveals that the token is retesting the support line of its descending triangle, which is drawn from joining multiple swing high levels from late March to early July.
A daily candlestick close above the triangle’s support line could trigger a 10% ascent to retest its daily resistance level of $0.4132.
Additionally, the formation of a lower low in the daily chart on July 5 contrasts with the relative strength index’s (RSI) higher during the same period, leading to a hidden positive divergence. This development is termed a bullish divergence and often leads to the reversal of the trend or a short-term rally.
Moreover, if ADA closes above $0.4132, it could extend the rally by an additional 41% to revisit its 50% price retracement at $0.6077. This would bring the total gains to 50%.
On the downside, if ADA produces a daily candlestick close below $0.3820 and establishes a lower low on the daily timeframe, it may signal a shift in market dynamics that favors bearish sentiment. Such a change could invalidate the bullish outlook, leading to a 19.5% crash in the Cardano price to the range low of $0.3171.
Meanwhile, the Cardano network is making significant progress toward its major Chang upgrade, one of the biggest updates in its history.
The recent release of Cardano Node 9.0.0 brings the blockchain closer to the highly anticipated Chang upgrade, which is set to substantially improve the smart contracts blockchain.
Romain Pellerin, chief technology officer at Input Output Global (IOG) – the company behind Cardano, commented on the release of the Cardano Node 9.0.0, saying it is a significant milestone and a “big deal” and a “foundational moment” for the Cardno community.
Pellerin emphasized that the upcoming Chang upgrade, set to bring decentralized governance to Cardano, will allow the community to vote and influence the network’s future onchain.
The Chang upgrade, expected by the end of July, is one of the most substantial updates in Cardano’s history. The release of the new node version marks an important step toward this upgrade, which Cardano founder Charles Hoskinson has also celebrated.
Cardanoupgrades have had a positive impact in the past, heightening the excitement for the Chang hard fork.
For instance, before the Alonso upgrade in 2021, ADA’s price surged by 130%, climbing from $1.35 to $3.10 in just a month. If the same scenario plays out, the Cardano price may see great gains in the near term.