What to expect from Cardano’s Chang hard fork?

The Cardano (ADA) blockchain is preparing to enter the final phase of its program to become a community-governed ecosystem. Cardano is currently managed by the software development company Input Output Global (IOG). However, this dynamic may soon change.

The next hard fork, called Chang, could propel Cardano into the Voltaire era. This move will mean a significant transition in the way blockchain is governed. Currently, Cardano is in the Basho era. The new update should take place in the second quarter of 2024.

Charles Hoskinson, co-founder of IOG, recently announced on his social media that June will be a crucial month for Cardano. He mentioned that Cardano Node version 9.0 is about to hit the market, setting the stage for the Chang hard fork.

Cardano Update

Furthermore, Hoskinson highlighted that the implementation of the new node depends on 70% of Stake Pool Operators (SPOs) adopting the update, which will pave the way for the fork that will take Cardano into the Voltaire era:

“We will have the most advanced blockchain governance system, annual budgets, a treasury, and the wisdom of our entire community to guide us.”

In the Cardano ecosystem, development phases are called “eras”. The Voltaire era stands out for its Cardano improvement proposal (CIP) 1694, which will be the first to be implemented. CIP 1694 suggests an overhaul of the blockchain’s on-chain governance system, putting the community in charge.

Three direct governance bodies, a constitutional committee, a group of delegated representatives (DReps) and stake pool operators (hSPOs) will be responsible for the administration of Cardano.

Challenges for ADA

Despite this promising news, ADA has been facing a downward trend in the market. Last Tuesday, the cryptocurrency eliminated almost 3% of its value. The prediction is that the altcoin could suffer another 7% decline, falling to the April 13 low of $0.3994, according to analyst Ekta Maurya.

According to her, technical indicators such as the Relative Strength Index (RSI), which is at 37.28, approaching the oversold zone at 30, and the signal line that crossed the Moving Average Convergence Divergence (MACD) line on Saturday, June 8, suggest a bearish thesis for Cardano.

However, a daily close above the June 7 high of $0.49 could invalidate this negative forecast. And this could enable a recovery to $0.6049. This level coincides with the 50% Fibonacci retracement of the decline from the March 14 peak ($0.8104) to the April 13 low ($0.3994).