As it moves through a dynamic crypto market and recent watershed moments become crystallized, Cardano (ADA) finds itself more and more at a point of potentially great significance. In this transitional moment, it has introduced decentralized governance, and what that really means is that ADA holders now have the power to effectively vote on major blockchain decisions—much like shareholders in a company. And this is happening in a moment that sees overall crypto market sentiment as quite positive, sitting at a score of 84.80 percent. In terms of overall “alternatives” to Bitcoin (BTC), one measure sees Bitcoin’s market dominance at around 58.76 percent [Source: CoinMarketCap].

Presently, Cardano’s price is $0.9244, and in the last 24 hours, it has traded $0.66 billion worth. It ranks 9th in the market; its market cap is $33.15 billion. Over the last 24 hours, ADA’s price has changed -1.14%. If we look at a 7-day timeframe, it has performed a little less than 4 days ago. In the last 30 days, the price has shown a more significant drop than the 7-day timeframe. Cardano’s key support levels are at $0.85 and $0.78. Resistance levels are at $1.00 and $1.10 [Source: TradingView].

When set against the clear market leaders, the performance of Cardano looks decidedly average. Bitcoin (BTC) trades at $102,962.558 with a 0.76% 24-hour increase. Ethereum (ETH), on the other hand, trades at $3,128.079 with a -0.56% 24-hour change. XRP, another major altcoin, is trading at a price of $3.056 with a -2.58% shift in the past 24 hours. The stablecoin USDT remains relatively unchanged at a price of $0.9999.

A few recent news items have dramatically influenced Cardano’s price movement. The Plomin hard fork, which went live on January 29, is a key landmark moment for the blockchain. This upgrade takes the network to a whole new level, bringing in real decentralized governance. Now, in tandem with the Cardano Foundation, we can confirm that Cardano stakeholders can actually participate in governance decisions and have their say when it comes to anything that’s going to affect how the network operates [Source: MSN].

Mixed opinions exist among analysts regarding the projected price path of Cardano. A few see it going down as far as $0.20 [Source: financefeeds]. Others, possibly influenced by Bitcoin’s trajectory, see it going up much more than down, possibly by 40% [Source: FXStreet]. The hard fork is projected to impact the price of ADA in a good way, making it go up. But if it doesn’t, or if it does and then quickly comes back down, or if it does some other weird price-moving thing, volatility could be the main reason why ADA price predictions are so all over the map. [Source: YAHOO!Finance]

Consolidation is underway in Cardano’s price chart, with the asset trying to hold above $1. The recent hard fork news has increased trading activity, but the price is essentially in a narrow range. The Relative Strength Index (RSI) shows a neutral sentiment, and the key Moving Average Convergence Divergence (MACD) is hinting at a possible bullish crossover. Volume analysis suggests that the recent price action is being driven by moderate trading activity, and there are no signs of a “sudden” price move either up or down.

For Cardano, the social sentiment is largely positive. People are talking about the potential of Cardano to achieve decentralized governance. Because of the setup of the upcoming FOMC meeting, we are expecting to see some volatility across the markets. This kind of volatility could certainly impact ADA’s price in the short term. However, we have seen some movements from the whales recently that indicate they are accumulating. And if you have been following along with me for some time now, you know that I am a big fan of accumulated positions because they tend to signal confidence in the asset’s long-term prospects.

The cryptocurrency market at large—of which Cardano is a part—has been quite volatile lately. The correlation of Cardano’s price action to that of Bitcoin, the first and most influential cryptocurrency, can’t be overlooked. Every time Bitcoin has a big green or red candle, Cardano usually follows to the upside or downside. Upcoming market catalysts that could impact the performance of Cardano include the FOMC meeting and potential regulatory developments. And if price projections are any indication, Cardano is at risk of following Bitcoin in the event that it (Bitcoin) makes a dive toward the $10,000 range. On the other hand, if Bitcoin can hold above $30,000, and if Ethereum can hold above $2,000, then the projection by some analysts of price pushes to the range of $1.50 for Cardano doesn’t seem too far-fetched.

To conclude, Cadano’s Plomin hard fork is a decisive step toward decentralized governance. For the network, the long-term benefits of this shift should outweigh any short-term turbulence we see in its price. Investors need to watch closely both for obvious developments in the market—like the price of Bitcoin—and for the not-so-obvious repercussions of governance moves and hard forks on the price of ADA.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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