Key Takeaways:
- Cardano (ADA) traded at $0.5, but could lose support and fall to $0.1.
- The Descending Triangle supports the bearish claim.
- Cardano's Vasil hard fork delayed. Will it boost the ADA value?
YEREVAN (CoinChapter.com) – Cardano (ADA) has advanced 25% to $0.5 since July 13, generally following Bitcoin’s fluctuations. However, the token’s daily chart hinted a massive sell-off ahead that could cost ADA 80% of its valuation.
ADA chart spells trouble
The Cardano token formed a bearish setup dubbed the Descending Triangle. The pattern occurs when the asset price fluctuates between a flat support line and a descending resistance.
Moreover, the Descending Triangle is typically a continuation pattern. If a drawdown preceded the formation, the Triangle would forecast another leg down, equal to the maximal distance between the trendlines.
Thus, if ADA confirms the setup through a breakdown below the support, the target price would be $0.1, or 80% lower than the current value. Furthermore, the declining trading volumes confirm the bearish expectations, hinting at a looming sell-off.
Cardano’s Vasil hard fork delayed
Meanwhile, Cardano’s much-anticipated Vasil hard fork was delayed, as announced by Kevin Hammon, the Technical Manager of Input Output Global (IOG; the company behind Cardano), in the monthly report presented below. The network upgrade release was targeted for late July but missed the mark.
Also read: Can Cardano’s Vasil hard fork help ADA avoid a 36% drop?
Hammon did not specify a new date but asserted that the developers are “working very hard” to fix the issues.
The team is working very hard […]. The good news is that this week we have just had a new 1.35.2 release that fixes issues that stake pool operators, DApp developers, internal testing and others have identified. The goal is that it will flush out any issues as we go to the Vasil hard fork
added the expert.
Will Vasil help?
As CoinChapter earlier reported, the upgrade aims to boost the network’s transaction throughput, volume, and liquidity. In addition, the hard fork might help make Cardano more “developer-friendly,” resulting in more blockchain projects.
However, network upgrades do not automatically equal boosted prices. For example, the 2020 bear market prevented an uptick after Cardano’s Shelly hardfork on Jul. 29, 2020. At the time, ADA prices flatlined below $0.1 and rallied only towards the end of the year.
Also read: Cardano (ADA) At Make-or-Break Levels, Another 50% Drop On The Cards?
The bullish effects of the hard fork are not a guarantee. But the Cardano community might have high hopes and pump the price before the release, regardless of whether Vasil delivers the promised benefits.
Additionally, ADA depends on Bitcoin’s price action and the broader market. Thus, the upcoming weeks will show if the bears or the bulls have the upper hand.
