Cardano Price Remains Trading Around $0.42 As Voltaire Upgrade Nears — Will ADA Commence A Rally?

Key Takeaways

• Voltaire upgrade scheduled for Q2 2024.
• ADA price forms a stable trading range.
• Whale activity indicates rising ADA acquisitions.

The Cardano Voltaire upgrade is part of the broader Chang hard fork, scheduled for the second quarter of 2024. This upgrade marks a significant transition for Cardano, introducing new governance features that will empower the community to propose and fund new projects, thus enhancing the network’s decentralized governance. 

ADA has been trading slightly above $0.40, its horizontal support level since April 13. It formed a range that lasted around two months, and the awaited upgrade is expected to ignite a new wave of price volatility. But can it make an upward breakout and start a new uptrend? 

Whales Are Active

Looking at the on-chain data , we can see that there has been an uptick in whale token acquisition, especially in the highest cohort between 10,000,000 and 100,000,000 ADA. Since the start of June, the number of addresses in this cohort has increased from 405 to 411 on June 12. 

This is also true for the cohort from 100,000 to 1,000,000 ADA held, as the number of addresses holding this amount rose from a low of 22,4K to 22,5 K. On the other hand, the number of addresses between 1,000,000 and 10,000,000 showed a downtrend, from a high of 2441 to 2430. 

ADA Price Analysis 

Cardano’s price has decreased since peaking at $0.80 on March 14. It dropped to $0.40 by April 13 before rebounding slightly above $0.44 and eventually reaching $0.53 on April 23. At this point, it resisted a descending trendline originating from the March high. The price fell again, testing the $0.42 support level multiple times, establishing a horizontal trading range between $0.42 and $0.51

Currently, Cardano is trading around $0.42, at the lower end of this range. The Relative Strength Index (RSI) is at 40% on the daily chart, indicating that the price direction remains uncertain. Further declines are likely if selling pressure increases, mainly if the price falls below $0.40.

However, ADA’s stability above the 0.618 Fibonacci retracement level within this established horizontal zone hints at the possibility of an upward movement. Should the price break above this range, it could lead to a significant rally, driving ADA to reach new highs for the year, potentially around $1.