- Whale activity remains flat after shedding 180M ADA, signaling a wait-and-see stance post-hard fork.
- Cardano’s DeFi TVL holds steady at $500M, with investor focus on governance adoption and future network participation.
Cardano [ADA] has officially implemented the Plomin Hard Fork, marking a shift in its governance model. The upgrade empowers ADA holders with direct on-chain governance, bringing the blockchain closer to full decentralization.
As Cardano takes this pivotal leap, market participants closely watch its impact on ADA’s price action, whale activity, DeFi performance, and broader adoption.
Cardano Plomin Hard Fork reshapes governance model
The Plomin Hard Fork represents one of the most significant milestones for Cardano.
Unlike previous hard forks focused on scaling and smart contract functionality (such as Alonzo and Vasil), Plomin shifts on-chain governance into the hands of ADA holders.
This means that proposals, protocol upgrades, and treasury allocations will now be community-driven, reinforcing Cardano’s commitment to decentralization.
The new governance framework is expected to enhance transparency, prevent centralized decision-making, and incentivize community participation, potentially making Cardano more attractive to institutional investors.
ADA price action and technical analysis
Cardano’s price has been relatively volatile leading up to and following the hard fork. ADA was trading at $0.9613 at press time, reflecting a 2.27% increase in the last 24 hours.
The price movement suggests mixed sentiment, with both bullish and bearish forces influencing the market.
A closer look at the daily chart reveals key technical indicators. The 50-day moving average (MA) sat at $0.9802, with ADA trading below this level, signaling mild bearish pressure at the time of writing.
The 200-day MA, positioned at $0.6094, indicated that the long-term trend remained bullish despite short-term price fluctuations.
The Accumulation/Distribution (A/D) Index stood at 2.02 billion, suggesting steady accumulation, though not aggressively.
Source: TradingView
The current support levels to watch are $0.90 and $0.85, while resistance sits near $1.00 and $1.10. If buying momentum increases post-hard fork, ADA could attempt to reclaim these levels.
Large holders remain flat despite prior sell-offs
Whale movements are a crucial metric for understanding large-scale investor sentiment.
Between the 19th to the 23rd of January, Cardano whales offloaded over 180 million ADA, signaling a potential lack of confidence ahead of the Plomin upgrade.
However, since then, whale activity has remained relatively flat, indicating that large holders are neither aggressively accumulating nor offloading more tokens.
This suggests a “wait-and-see” approach, where institutional players are observing the governance shift before making major moves.
Source: Santiment
If whales begin accumulating ADA again, it could serve as a bullish catalyst, reinforcing confidence in the network’s future.
Has the upgrade boosted adoption?
The Plomin Hard Fork isn’t just about governance—it could have implications for Cardano’s DeFi ecosystem.
Total Value Locked (TVL) in Cardano’s DeFi protocols stood at around $500 million at publication, reflecting steady growth in decentralized finance activity.
While this is a significant improvement from early 2023, the TVL remained well below Ethereum [ETH], Solana [SOL], and BNB Chain.
The hard fork’s long-term success could be measured by whether it attracts more liquidity, developers, and institutional participation into Cardano’s ecosystem.
Source: DefiLlama
If ADA’s governance model increases investor confidence, we could see a rise in staking participation and lending protocols leveraging ADA.
What’s next for ADA? Key areas to watch
With the Plomin Hard Fork live, the focus now shifts to how Cardano’s ecosystem reacts over the next few weeks.
A bullish scenario would see increased whale accumulation, higher TVL in Cardano DeFi, and ADA breaking above $1.00, signaling a strong recovery.
If governance adoption is high, confidence in Cardano’s network could further fuel price appreciation.
A neutral case would involve ADA consolidating between $0.90 and $1.00, with whales maintaining their current flat positioning.
This would indicate a wait-and-see market approach, awaiting more data on governance participation.
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A bearish outlook will materialize if ADA fails to sustain support at $0.90, combined with continued whale sell-offs and stagnant TVL. This could push ADA lower, possibly toward $0.85 or even $0.80.
ADA’s on-chain metrics remain stable for now, but the market’s response to governance participation will determine its next trajectory.
