Cardano Set for Major Chang Fork This Weekend – Will ADA Price Skyrocket?

• The Cardano network will undergo the Chang Hard Fork on September 1, 2024.

• Whales have been accumulating the token in anticipation of a price increase

Cardano (ADA) is on the brink of a significant price increase as the network prepares for the Chang hard fork, which is set to introduce critical on-chain governance features. The hard fork that was initially planned for the end of August was postponed for September 1, which raised interest among investors and large ADA holders and created expectations for a sharp increase in the coin’s price.

Chang Hard Fork Ushers in New Era of Decentralized Governance

The Chang Hard Fork is a significant event for Cardano, especially in the Voltaire era, which is aimed at decentralization of the governance. The upgrade will be the biggest since 2021 and is intended to ensure a seamless transition to community governance of the blockchain. 

This upgrade is split into two main stages. The first phase will start on the 1st of September, 2024, with the beginning of the 507th epoch, which will consist of establishing a working group that will analyze the progress and make sure that all the required thresholds are achieved. This group will be responsible for ensuring that the ecosystem is ready for the hard fork and will have the ability to raise governance actions as deemed necessary. 

Once the first phase is done and the working group approves the hard fork, Cardano will move to the last stage of decentralization. This will enable ADA holders to take over the network, signifying the shift from centralized governance. 

The second phase of the upgrade, which will be launched in three months, will incorporate enhanced governance capabilities. These are decentralized representatives (DReps) and new governance forms meant to enhance the involvement of Cardano Stake Pool Operators (SPOs). With these improvements, the blockchain will be ready to operate as a decentralized community-owned platform. 

Whales Accumulate ADA and Signal Bullish Outlook

Recent data indicates a strong accumulation trend among large Cardano holders, commonly referred to as “whales.” These investors have been steadily increasing their ADA holdings over the past month rather than selling, signaling a bullish sentiment toward the token’s future. The positive net inflows reported in the market also indicate that whales are preparing for the next price surge.

The accumulation by large wallet holders and the delay in the Chang hard fork have boosted the demand for ADA. This is evident from the Global In/Out of the Money (GIOM) metric, which reveals that around 4.32 billion ADA is worth $1.57 billion and is close to becoming profitable. This supply was bought at prices ranging from $0.33 to $0.36, and therefore, a break out from the current descending wedge pattern may lead to these assets being positive.

Several on-chain metrics suggest that Cardano might be gearing up for price appreciation in the coming days. One of these metrics is the Market Value to Realized Value (MVRV) ratio, which is currently at -11. 08% within one week. This figure indicates that ADA is trading at a lower value than its actual worth, making it a good entry point for investors who want to buy the asset. Moreover, at the time of this writing, Cardano is trading at $0.3489, with a 24-hour increase of 3%.