- 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
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
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.