Cardano (ADA) is undergoing some upgrades today with the activation of the Plomin hard fork, which will bring the network closer to its goal of full decentralized governance.
This will give ADA holders direct voting power on decisions like expenditure of funds, changes to network parameters and future hard forks. The Cardano Foundation said this would give users a say in determining the network’s future.
“The Plomin hard fork takes effect, marking the transition to full decentralized governance. ADA holders gain real voting power – on parameter changes, treasury withdrawals, hard forks, and the blockchain’s future,” the foundation said in a tweet.
The Plomin Hard Fork and How it Works
The ‘Plomin hard fork’ is a significant upgrade that is ‘not backwards-compatible’, meaning everybody must upgrade their software in order to remain connected to the network.
The stake pool operators (SPOs) have to upgrade their nodes, and at least 51% of them must approve for the transition to happen. It is reported that close to 80% of the nodes have been upgraded as of last week, and this will see the transition being seamless.
Moreover, the upgrade is a significant move towards decentralization, where ADA holders will be directly engaged in governance. With this shift, Cardano is becoming a “community-driven blockchain”, with users determining its future.
ADA’s Price Struggles Amid Whale Sell-Offs
This upgrade is a big improvement but it doesn’t change the fact that ADA’s price has been doing badly.
The token recently dropped by almost 10% over the last few days, and this is because whale activities have been reducing. In fact, many larger whales have been selling off their token and this has put some pressure into the market, which further pushes the price down.
According to IntoTheBlock, the netflow of large holders has dropped by 90% in the past week. Additional data from Santiment shows that many smaller holders are also cashing out rather than accumulating ADA, reinforcing the bearish trend.
Now, experts are wondering if this new upgrade would be sufficient to prevent ADA’s price from dropping or if it will continue to decline.
Will ADA Recover or Fall Further?
If we consider technical indicators on the chart, we would see that the Relative Strength Index (RSI) line is currently sitting at 41.49, which shows that the bears are still in control. It’s also not yet at an oversold level.
If the price continues to fall, analysts predict ADA could drop to $0.82, a new 30-day low. But if market sentiment changes and investors begin to buy ADA once more, the token could bounce back and rise to $1.
Right now, ADA is currently trading at $0.91, having recorded a 3.8% increase for the day according to CoinMarketCap.
Also Read: XYO Token Jumps 45% After Layer One Blockchain Launch
