- Cardano (ADA) eyes a 8% drop.
- Technical indicators are bearish.
- Can the upcoming Voltaire upgrade bolster the ADA price?
YEREVAN (CoinChapter.com) – Cardano’s ADA token lost 5% month-to-date, dropping to $0.38 ahead of the New York session on April 6. Moreover, the token could drop an additional 8% before Sunday, April 9, based on technical indicators.
Will ADA retire the rising channel?
The Cardano token has traded within a technical setup named the ‘rising channel’ since early March, which is best visible on the four-hour chart. The pattern entails two parallel, rising trendlines that prevent sharp rises and declines. Meanwhile, the rising channel does not predict a bias after the token breaks in either direction.
ADA retested the channel’s support on April 6. However, several indicators point to a bearish bias in the upcoming sessions instead of a rise up to the channel’s resistance. For example, the trading volumes on the chart above have been declining month-to-date, which could indicate traders’ growing disinterest.
Moreover, the relative strength index (RSI; purple graph at the bottom) diverged from the price action. While the price action chart printed higher lows, the line connecting RSI lows was flat, indicating a possible looming drop in ADA value.
If the Cardano token drops, it is likely to seek support from the next available assistance line at $0.35, or 8% lower than the current ADA price.
Voltaire upgrade upcoming
Meanwhile, according to the Cardano roadmap, the next stage of ecosystem development, the “Voltaire” upgrade, will put together “the final pieces required for the Cardano network to become a self-sustaining system.” When Voltaire goes live, it will introduce a new voting and governance system and a new treasury system.
“When both a voting and treasury system are in place, Cardano will be truly decentralized and no longer under IOHK’s management. Instead, Cardano’s future will be in the hands of the community, who will have everything they need to grow and evolve Cardano.”read the Voltaire discribtion.
Input Output Hong Kong (IOHK), the company behind Cardano, has teased the “Age of Voltaire” since the blockchain’s big developer event in Scotland in November 2022. However, no exact date has been released as of early April.
Meanwhile, Cardano boasted its “over 4 million wallets,” over “8 million native tokens,” and 64 million transactions on April 5.
Despite the bullish factors, ADA still traded over 88% below its all-time high of $3.1 in August 2021 and could lose more value in the upcoming sessions.