• Cardano price faces an uphill battle against multiple hurdles ranging up to $0.628.
  • A swift recovery above $0.487 will be key to triggering a run-up to $0.550 and subsequent resistance.
  • A daily candlestick close below $0.435 will invalidate the bullish thesis for ADA.

Cardano price looks like it will face a massive amount of selling pressure that could lead to choppy price action. However, the fundamental side of things looks good for ADA considering the recent update regarding the highly anticipated Vasil hard fork.

One step closer to Vasil hard fork

As explained in previous articles, this upgrade will take a three-fold approach to improve the Cardano blockchain - scaling, smart contract capabilities and block transmission latency. The first major update regarding this upgrade was provided on June 27 when IOHK, the developer team behind Cardano announced the launch of node 1.35.0.

Stake Pool Operators (SPOs) need to upgrade to the latest version of the node to participate in the Vasil hard fork testing that will begin soon. IOHK CTO Romain Pellerin announced,

We reached 50% of stake controlled by 1.35.0 nodes on the #Cardano testnet, 25% more to go

When this number reaches 75%, the Vasil hard fork event can take place on the Cardano testnet. As of June 28, this number currently stands at 53.2%, which suggests that there is a long way to go. 

Cardano price faces off against blockades

Cardano price is attempting to overcome its immediate hurdle at $0.488 aka the 8-day Exponential Moving Average (EMA). ADA is trading between the 8-day and 34-day EMAs since June 24 and remains that way as of June 28.

However, the recent recovery above the weekly open at $0.484, suggests that the bulls are in control. 

The resulting rally is likely to propel Cardano price to $0.550, which is just above the 34-day EMA. Overcoming these two blockades will put ADA against the 50-day EMA. This is likely where the upside is capped for the so-called “Ethereum-killer.”

Therefore, the journey for ADA is an uphill battle although it is likely to continue heading higher. However, if Bitcoin price starts to rally, it will improve the chances of an upswing for Cardano price and other altcoins as well.

Hence, a decisive move above $0.550 could push ADA to $0.628, where it is likely to form a local top.

ADA/USDT 1-day chart

ADA/USDT 1-day chart

Although things might be looking optimistic for ADA, it faces headwinds. If Cardano price crashes lower and produces a daily candlestick close below the $0.435 support level, it will create a lower low and invalidate the bullish thesis.

Such a development could see the ADA price dive another 12% to retest the $0.380 foothold.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP