Skip to main content

Cardano price could fall by 20 percent despite "Vasil" hard fork



 Cardano ( ADA ) declined on July 21 amid increasing selling pressure around its fiercest resistance levels in 2022 due to the large planned hard fork.


ADA price could drop 20 percent by early August

ADA was down 5 percent on the day at $0.476. This drop came a day after the brief break above the 50-day EMA (red line on the chart) at $0.50.


The 50-day EMA has acted as resistance at ADA since October 2021. 

Additionally, resistance at the upper trendline of a broader descending channel reinforced selling sentiment around the 50-day EMA. In early June, the same set of resistances triggered a 35 percent decline in price toward the channel's lower trendline.


Therefore, there is a risk that another correction in ADA could take the price down towards $0.384 by July or early August. That would represent a drop of about 20 percent from the July 21 price.


2018 fractal: ADA rate at $0.20

However, one analysis suggests ADA could drop even lower than $0.384.


A bearish ADA forecast from TradingShot compares the ongoing correction to a 2018 correction as seen in the chart below.

In the 2018 chart above, ADA has been undergoing multiple declines near its 50-day EMA (orange line) while continuing to trend lower in a descending channel. The token’s downtrend ended after a nearly 93 percent correction from its local peak.


"Looking at the 1D RSI, we appear to be on the third (3) and final leg below the dip," said TradingShot . In addition it said:


“So, if ADA owners want to avoid that, price needs to break out of the 1D MA50 and hold above it for at least a week or there could be a 93% drop to $0.200.”

When is the hard fork coming?

This latest ADA correction comes just days before the Cardano hard fork.


The hard fork called " Vasil " was supposed to take place in June, but was postponed to the last week of July due to several bugs . Still, as of July 21, Input Output Hong Kong (IOHK), the company behind the Cardano blockchain, has yet to announce an exact date for the hard fork.


Vasil is expected to bring significant performance improvements to the Cardano blockchain. These include faster block generation and higher transaction speeds. The upgrade could boost ADA adoption due to improved network efficiency.


But Cardano has historically seen sharp corrections following most network upgrades. This is due to the " buy the rumor, sell the news " principle that has become established in the market.

In the Alonzo blockchain upgrade in September 2021, ADA has partially surged over 200 percent to a record high of 3.16 percent pre-launch. After the upgrade, however, Cardano fell by over 85 percent. 


ADA is up just 25 percent after the token bottomed at $0.384 on May 10. This suggests that Vasil has moved the market little.


But not everyone is convinced. For example, analyst Lark Davis believes that if the token can hold the 50-day EMA as support, it will break out strongly after the hard fork.

Until then, ADA will likely continue to be under "sell the news" pressure. This is further compounded by the ongoing macroeconomic risks and their negative impact on the crypto markets.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin...
Post a Comment
Read more

Phishing attack on popular crypto sites tries to empty wallets

  Several major crypto sites such as Etherscan, CoinGecko, DeFi Pulse, and others report malicious pop-ups scammers use to try to trick users into connecting their MetaMask wallets. The phishing attack came from a domain displaying the Bored Ape Yacht Club (BAYC) logo. "We are investigating the root cause of this attack to fix the threat as soon as possible," CoinGecko founder Bobby Ong tweeted. The phishing attack appears to have been triggered by a malicious ad script from Coinzilla, a crypto ad network, according to CoinGecko. Etherscan also advises its users not to confirm any transactions that may appear on the website. The attackers attempted to use the hype around the “bored monkeys” non-fungible tokens (NFT) to gain access to the cryptocurrencies of unsuspecting website visitors. Although the websites affected by the scam attempt have reacted in the last few hours and deactivated the advertising pop-up, it is still recommended not to connect your MetaMask wallet to ne...
Post a Comment
Read more

Bored Ape Yacht Club NFTs stolen through phishing on Instagram

  Bored Ape Yacht Club ( BAYC ) developers announced on Monday that hackers have hijacked the official Instagram page of the popular NFT collection and posted links to a fake airdrop. Crypto enthusiasts who connected their MetaMask wallet to the rogue website subsequently had their Ape NFTs stolen. Apparently, the attack was planned to coincide with the one-year anniversary of the BAYC collection. This increased the "perceived credibility" of the phishing link. About 100 NFTs are said to have been stolen in the phishing attack . According to CoinGecko data , the minimum price for a BAYC NFT is 139 Ether ( ETH ) or $400,726. So if reports are correct, over $40 million worth of NFTs were stolen in the attack. These numbers are only the lowest estimate, however, as they are based on the lowest price.  At the time of writing, it was still unclear how the hackers gained access to BAYC's official Instagram account. Social media users have pointed out the importance of two-fact...
Post a Comment
Read more