Cardano’s (ADA) price has dipped today as traders remain cautious ahead of the blockchain’s first hard fork in two years. The ADA token wobbled between gains and losses over the past 48 hours, falling by 1.5% on Aug. 30 to $0.35, erasing nearly all of the previous day’s gains.

Chang Hard Fork to Introduce Onchain Governance

The decline in ADA’s price reflects uncertainty around the upcoming Chang hard fork, set to go live on Sept. 1. This upgrade will introduce on-chain governance, allowing Cardano users to participate in voting on improvement proposals and future technical changes. Holders of ADA will also be able to elect Delegate Representatives (dReps) to make governance decisions on their behalf.

ADA/USDT daily price chart. Source: TradingView

While this move is expected to enhance the network’s functionality, traders remain hesitant, given ADA’s underperformance compared to its blockchain rivals. Despite the potential benefits of the upgrade, ADA has dropped 45% year-to-date, underperforming competitors like Solana, which saw a 26.75% gain, and Ethereum, up 6.75%.

Falling Wedge Pattern Signals Potential Drop

Cardano’s intraday losses are part of a broader bearish trend within a falling wedge pattern. This pattern, characterized by two converging descending trendlines and declining volumes, suggests further downside potential. Earlier in August, ADA retested the upper trendline of this wedge and has since dropped 15%, including today’s losses.

Year-to-date performances of top-15 crypto assets by market cap. Source: Messari

The wedge pattern indicates that ADA’s price could fall further, possibly reaching the pattern’s apex at around $0.26. However, falling wedges often lead to bullish reversals. Should ADA break above the upper trendline, gains toward the $0.47 to $0.65 range could be seen by October, depending on the breakout point.

In summary, while the Chang hard fork could improve Cardano’s network, uncertainty lingers in the market as traders brace for the potential impact on ADA’s price.