Cardano Price Forecast: ADA is Ripe for a Major Bearish Breakout
- Cardano price has been in a steep sell-off in the past few months.
- Its market cap has plunged from $91 billion to $15 billion.
- The Vasil hard fork will not spur demand for ADA.
Cardano price is hovering near its lowest level this year even as the platform’s developers launched the Vasil hard fork testnet. ADA is trading at $0.4493, which is slightly above the year-to-date low of $0.3915. This drop brings Cardano’s market cap to over $15 billion.
Cardano Vasil hard fork
Cardano is a leading blockchain project that aims to become the best alternative to Ethereum. Its goal is to solve some of the top shortcomings that Ethereum has such as high transaction costs and slow speed.
Cardano gained smart contract features in 2021 during the Alonzo hard fork. Since then, thousands of developers have started building applications in the network. Some of the top apps in the ecosystem are SundaeSwap and MinSwap.
Now, the developers are working on the next major upgrade which is known as Vasil. This upgrade will introduced new features in the ecosystem and make it substantially faster and more secure. Most importantly, the upgrade will enable the creation of sidechains.
Here’s how to buy Cardano.
In a statement, Input Output, who are Cardano’s developers, wrote that they had managed to run the Vasil upgrade on the testnet. The statement added that participants in the ecosystem should work hard to deploy their work on the testnet to ensure that it runs smoothly when the upgrade is launched on the mainnet. It is estimated that the hard fork will take place in August of this year.
The Vasil hard fork is part of the ongoing scaling phase of Cardano that is known as Basho. The previous phase, which was known as Basho, culminated in the Alonzo hard fork that led to smart contracts.
Still, the biggest challenge for Cardano is attracting quality developers to its platform. While many developers are building in Cardano, there have been no mainstream applications built in the ecosystem.
Cardano price prediction
The daily chart shows that Cardano price is trading at an important support level at $0.4372. It has struggled to move below this support point several times since May of this year. The coin is below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) and the MACD are pointing downwards.
Therefore, ADA price will likely have a bearish breakout as bears target the key support at $0.35 in the near term. A move above the resistance at $0.50 will invalidate the bearish trend.