Cardano (ADA) is set to undergo a major transformation later today as the Plomin hard fork activates, marking its transition to full decentralized governance.
The upgrade will give ADA holders direct voting power over key network decisions, including parameter changes, treasury withdrawals, and future hard forks, according to the Cardano Foundation.
Despite this milestone, ADA’s price struggles amid declining whale activity and increased selling pressure, raising concerns about whether the upgrade can stabilize the token or if further declines are ahead.
Plomin Hard Fork: A New Era for Cardano
A hard fork is a fundamental change to a blockchain’s code that is not backward-compatible, meaning all network participants must upgrade their software to stay connected.
For Plomin, stake pool operators (SPOs) need to update their nodes, and at least 51% approval is required for the change to take effect. As of last week, nearly 80% of nodes had already upgraded.
The upgrade marks a major shift toward true decentralization, allowing ADA holders to shape the network’s future through direct on-chain governance. The move is expected to enhance transparency and community engagement, potentially increasing long-term confidence in the project.
Whales Exit as ADA Price Drops
While the hard fork is a significant step for Cardano, ADA’s price has struggled in recent weeks, dropping nearly 10%. Analysts point to whale activity as a key factor in the decline.
According to IntoTheBlock, large holders’ netflow has plunged by 90% in the past week, indicating that whales are selling off their ADA holdings. This selling pressure has flooded the market with supply, further accelerating the token’s decline.
Additionally, on-chain data from Santiment shows that many ADA holders are cashing out profits, rather than accumulating tokens, reinforcing a bearish trend.
Will ADA Hit a 30-Day Low?
Technical indicators suggest that ADA may fall further before finding support. The Relative Strength Index (RSI) currently sits at 45.49, indicating growing selling pressure but not yet reaching oversold conditions.
If the decline continues, analysts predict ADA could drop to $0.82, marking a new 30-day low. However, if market sentiment shifts and investors start accumulating ADA, the token could rebound above $1.
Key Levels to Watch
- Support: $0.82 (30-day low)
- Resistance: $1.00 (psychological level)
