Cardano has taken a significant leap toward becoming a fully decentralized blockchain network with the successful launch of the Plomin hard fork on 29 January 2025. Representing a crucial milestone in Cardano’s governance, the upgrade gives ADA holders direct control over key decisions related to the network’s development. However, despite this progress, ADA’s price has remained underperforming, reflecting broader market turbulence. Could this governance breakthrough help ADA reclaim the $1 mark?
The significance of the Plomin hard fork on Cardano
Decentralization has long been a fundamental goal for blockchain projects, but achieving it at scale has proven to be a complex challenge. With the Plomin upgrade, Cardano has now reached a new level of governance.
The Cardano Foundation confirmed this transition, emphasizing that ADA holders now have real voting power over key aspects of the network, including protocol changes, treasury withdrawals, and future hard forks. The shift is expected to foster greater transparency and community-driven decision-making.
Reacting to the development, the Cardano Foundation stated: “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. A milestone in blockchain governance.”
Named in honor of Cardano contributor Matthew Plomin, the upgrade introduces a governance framework that enhances user participation. One of the most notable changes is the implementation of Delegated Representatives (DReps), which allows ADA holders to delegate their voting power to representatives who will vote on governance matters.
Unlike traditional governance models, this system enables users to reassign their votes at any time, ensuring flexibility and responsiveness to community interests. Additionally, the upgrade grants direct control over the Cardano treasury, allowing funds to be allocated through transparent community voting. This change is expected to make Cardano’s governance one of the most decentralized in the industry.
Read also: ADA price jumps over 200% in November: Driving factors, predictions and analysis
ADA price reaction and projections
Despite this significant governance milestone, ADA’s price struggled, dropping 3.8% on Wednesday to trade at around $0.92. The decline comes amid broader market volatility, with concerns about macroeconomic factors, including China’s DeepSeek launch and interest rates, weighing on investor sentiment. Interestingly, the utility token has regained momentum today, up over 6% at the time of writing.
Moreover, some analysts believe ADA could be on the verge of a strong rebound. Pseudonymous crypto trader CobraVanguard has identified a key support zone between $0.85 and $0.90, an area that has historically triggered buying interest. Based on data from the 4-hour candle chart, the analyst predicts a potential bounce toward the psychologically significant $1.00 level. If ADA successfully holds this support, the rebound could extend to higher resistance levels in the coming weeks.
Veteran trader Peter Brandt has also weighed in on ADA’s long-term prospects, pointing to a bullish pattern on the weekly chart. According to Brandt, ADA has broken out from a multi-year double-bottom formation, a pattern that often signals the end of a prolonged downtrend. This suggests that Cardano may have completed its bearish cycle and could be setting the stage for a sustained upward move.
Read also: Cardano blockchain to undergo major network upgrade September 1
On-Chain data suggests renewed interest in ADA
While ADA’s price remains below $1 at the time of writing, on-chain data from IntoTheBlock indicates growing network activity and accumulation by long-term holders. The number of active addresses on the network has increased substantially, indicating renewed engagement from users. Additionally, the accumulation of ADA by long-term investors has seen a notable uptick, suggesting confidence in the cryptoasset’s future prospects.
Particularly, the 7-day “Net Active Change” rose by 4.79% last week, reflecting a modest uptick in network engagement. Likewise, the 7-day “Actively Accumulating Change” increased by 11.99%, signaling growing interest from long-term holders. Also, the 7-day “Zero Balance Addresses Change” surged by 12.26%.
The rise in “Zero Balance Addresses Change” indicates that more users are entering the Cardano ecosystem, either by creating new wallets or reactivating dormant ones. These trends suggest that, despite short-term price fluctuations, interest in Cardano is expanding, which could provide a foundation for future price appreciation.
Institutional interest in Cardano could also play a role in ADA’s price movement. Notably, Tuttle Capital recently filed to launch leveraged exchange-traded funds (ETFs) for multiple cryptocurrencies, including ADA. If approved, these ETFs could bring fresh capital into the Cardano ecosystem, further supporting demand for the token.
Key levels to watch for ADA
ADA Price Action by January 30:
Cardano’s price action remains in a critical range, with strong support around $0.85 and a key resistance level at $1.00. If ADA breaks above the $1.00 mark, the next major resistance lies at $1.18, a level that has previously capped upward moves. Conversely, if the price fails to hold above $0.90, a potential drop to $0.80 could be on the horizon. On January 31 ADA traded at $0.96 translating to a 6.5% gain as January came to a close.
ADA Current Price Action
After falling further to 0.90 by the end of February 1, ADA price has been volatile, slumping to 0.79 in another 24 hours and to as low as 0.57 within another 24 hours. This was mainly triggered by the Donald Trump tariff wars with Canada, Mexico, and the Europe Union. At the time of writing, ADA is trading at 0.74 per coin, consistent with the bearish mode in the crypto market.
With the implementation of full decentralized governance, Cardano has positioned itself as one of the most community-driven blockchain networks. While the immediate price reaction has been muted, the long-term impact of this positive development could be substantial. Meaning, ADA could be set for a significant rally in the coming months.
Read also: ADA price jumps over 200% in November: Driving factors, predictions and analysis
Ndianabasi Tom A Petroleum Engineering degree holder, Ndianabasi’s interest since 2018 has been studying the ever-growing field of blockchain and cryptocurrency, keenly evaluating the innovation, exploration, and expansion of this field locally and globally. The founder of Nitadel a media platform, Ndianabasi has been a Writer at Crypto Asset Buyer (CAB) since 2021. When he is not drilling resources in the blockchain and cryptocurrency field, Ndianabasi is singing, reading, watching crime movies, or playing football.
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