Yesterday, Cardano (ADA) launched its Governance Tool on the mainnet. This is a step forward in the decentralization of its blockchain. The GovTool is one of the first features of the Chang hard fork update.
Despite this positive event, ADA has not seen a surge. This morning the token has fallen by 0,66 % to touch the level of $0.33, although it has mainly been pushed down by the rest of the market.
Bitcoin has fallen below the $55,000 level, so Cardano could see further price drops soon. With the implementation of Chang’s hard fork, the future for the blockchain and its token looks brighter.
Will Cardano Rebound After GovTool Launch?
The Chang hard fork is a major upgrade for Cardano, which could help make the blockchain fully community-driven. The upgrade will take some time, as several features and tools are launched to make it as efficient as possible.
One of the first features is the GovTool, which allows community members to register as dRep (decentralized representatives), i.e. users who choose to participate in the governance of the chain. The tool will allow members to submit proposals to the governance and also vote on major development proposals.
ADA holders can then become dReps and actively contribute to the governance of the network. To register as a dRep, you need to connect your crypto wallet to the GovTool. Of course, you need to have enough ADA in your wallet to participate.
This factor could have a positive effect on the ADA token, as it gives the token greater utility.
Cardano founder Charles Hoskinson is currently working with other developers on new features for the Chang hard fork. If Cardano can become a fully decentralized ecosystem, there could be positive implications for the value of ADA as well.
Cardano could finally see a reversal of the trend and leave the bearish trend behind. Most altcoins are in the red, but Cardano, unlike others, failed to recover during the months of May and July.
ADA is currently trading below its 30-day moving average (yellow) and 200-day moving average (blue). The latter is putting a lot of pressure on the price. Due to this, Cardano has failed to move towards $0.35 last week. Furthermore, the relative strength index (RSI) has dropped below 40, which indicates that the bearish sentiment continues to persist even after the launch of the GovTool.
ADA may continue to decline in the coming days, but the Chang hard fork could reverse the bearish trend, paving the way for a recovery to $0.75 by the end of the year.
Bitcoin looks set to continue falling today, and Cardano may struggle to find the strength to rally in the coming days. While Chang’s hard fork could give ADA a boost, it will largely depend on the rest of the crypto market.
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