- After losing 180M ADA in the last fork, whale activity is flat. This indicates a waiting-and-see attitude.
- Cardano DeFi TVL remains steady at 500M USD, as investors continue to focus their attention on the governance of future networks and network participation.
Cardano [ADA] Plomin’s Hard Fork was officially launched, marking an important shift in governance. The upgrade provides ADA owners with on-chain direct governance and brings the blockchain one step closer to complete decentralization.
Market participants are closely watching the impact of Cardano’s pivotal move on ADA price, whale activity and DeFi performance.
Cardano Plomin Hard Fork reshapes governance model
The Plomin Hard Fork The most important milestone in the history of Cardano.
Plomin is a hard fork that puts on-chain management in the hands ADA holders.
Cardano will be able to better decentralize its operations by allowing community members to make proposals and upgrade protocols.
Cardano’s new governance model is designed to improve transparency, avoid centralized decision making, and to encourage participation by the community. This could make Cardano more appealing for institutional investors.
ADA Price Action and Technical Analysis
Cardano’s Price has been volatile in the lead up to, and immediately following, the hard fork. ADA traded at $0.9613 as of press time. This represents a 2.27% rise in the past 24 hours.
Prices indicate mixed emotions, both bullish as well as bearish forces impacting the market.
The daily chart contains key technical indicators. The 50-day MA was $0.9802 and ADA traded below it, indicating mild downward pressure.
The 200-day MA at $0.6094 indicated that the trend was bullish over the longer term despite recent price changes.
The Accumulation/Distribution (A/D) Index stood at 2.02 billion, suggesting steady accumulation, though not aggressively.
TradingView
Support levels are currently $0.90 and $0.85, while resistance is near $1.00 or $1.10. ADA may try to reclaim the levels if buying momentum grows post-hard fork.
Large holders remain flat despite prior sell-offs
The movement of whales is a key metric to understand large scale investor sentiment.
The 19th and 23rd days of January are the best dates to visit. Cardano Whales have offloaded more than 180 million ADA in the run-up to Plomin’s upgrade, possibly signaling a lack of confidence.
Since then, however, the whale activity is relatively flat. This indicates that big holders do not aggressively accumulate or offload more tokens.
It is a suggestion that a “wait-and-see” Approach, in which institutional actors observe the shifts in governance before taking major steps.
Santiment
It could be a positive catalyst for the future of the network if whales start to accumulate ADA once again.
Upgrades to the system have boosted adoption.
The PlomThe following are some examples of how to use Hard Fork isn’t just about governance—it could have implications for Cardano’s DeFi ecosystem.
Total Value Locked (TVL) in Cardano’s The Decentralized Finance Protocols stood at approximately $500 Million at the publication date, reflecting a consistent growth in decentralized financing activity.
Although this represents a marked improvement over early 2023 the TVL remains well below Ethereum [ETH], Solana [SOL]BNB Chain and.
Cardano ecosystem’s success can be judged by how well the hard fork attracts liquidity, developers and institutional participants.
Source: DefiLlama
If ADA’s governance model improves investor confidence, you may see a growth in staking protocols and lending protocol leveraging ADA.
What is next for ADA? Watch out for these key areas
The focus is now on the Plomin Hard Fork Live. Cardano’s The ecosystem will react over the following weeks.
In a bullish scenario, we would expect to see an increase in whale accumulation and ADA above $1.00.
Cardano prices could increase if the network’s governance is well-established.
If ADA were to consolidate between $0.90 and $1.0, the whales would maintain their flat position.
It would be a market-based approach to wait and see, while awaiting further data about governance participation.
Is your portfolio green? Look at the Cardano Profit Calculator
If ADA does not maintain support at $0.90 and TVL stagnates, a bearish scenario will be manifested. This may push ADA down, perhaps to $0.85 or $0.80.
ADA metrics for on-chain remain unchanged, however the next step will depend on how the market reacts to its participation.
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Source: ambcrypto.com
