Cardano (ADA), a top cryptocurrency platform known for its proof-of-stake consensus mechanism, is facing a wave of pessimism from investors. According to Santiment, a crypto analytics firm, ADA is experiencing its most bearish sentiment in over a year, with some analysts suggesting traders have “completely written off” the project.
This comes as a surprise, considering Cardano is on the cusp of its highly anticipated Chang hard fork. Marketed as the most significant upgrade in Cardano’s history, the Chang fork promises to usher in decentralized ownership, improved scalability, and enhanced security for the blockchain.
The upgrade also paves the way for community-driven governance, a feature many believe will empower ADA holders. However, the market seems unimpressed. Cardano’s token price remains outside the top 10 on CoinGecko, even falling behind Dogecoin and Tron.
Meanwhile, a contrasting picture emerges for XRP, another major altcoin. XRP is experiencing a surge in bullish sentiment, fueled by positive narratives. The Ripple-affiliated token recently hit $0.61, its highest level since April. This has drawn comparisons between XRP and ADA, both known for their devoted communities and similar price movements in the past. However, some analysts, like Murad Mahmudov, formerly of Goldman Sachs, dismiss them as mere “cult meme coins.”
Despite the current enthusiasm for XRP, cautionary signs linger. Technical indicators suggest a potential “bearish divergence,” hinting at a weakening bullish trend. This stands in stark contrast to Cardano’s upcoming upgrade, which seems to have failed to ignite investor confidence.
Only time will tell if Cardano’s Chang hard fork can reverse the negative sentiment. With ADA prices down a staggering 85.5% from their all-time high, according to CoinGecko, Cardano has a mountain to climb to regain investor trust.