- Cardano price has been in a steep downward trend in the past few months.
- The developers will implement the Vasil hard fork in September.
Cardano price is in a consolidation phase as investors focus on the next decision by the Federal Reserve. ADA was trading at $0.4537, which was about 7% above the lowest level this month. This price is significantly lower than its all-time high of $3. Its market cap has dropped from over $90 billion to about $15 billion.
Vasil hard fork
Cardano is a leading blockchain project that hopes to become an alternative to Ethereum. Its goal is to become a platform where developers build quality and scalable applications in all industries like finance, art, and gaming.
Cardano was established by Charles Hoskinson in 2015 and launched in 2017. As part of its lengthy roadmap, Cardano unveiled smart contract capabilities in 2021. This move allowed developers to start building applications in its ecosystem.
However, the smart contract industry has gotten substantially competitive in the past few months. Some of the top Cardano rivals that have taken substantial market share are Polkadot, Tron, Ethereum, Solana, and Avalanche.
As a result, Cardano’s ecosystem has been relatively small. For example, according to DeFi Llama, the total value locked (TVL) in Cardano is just $80 million. In contrast, Cronos, whose mainnet was launched in November last year, has a TVL of over $890 million.
Cardano also has no meaningful market share in the NFT industry. According to CryptoSlam, the top blockchains for NFTs are Ethereum, Solana, ImmutableX, Polygon, BNB, and Flow. The same is true in other industries like gaming and the metaverse.
Cardano’s developers have pointed to the need for slow adoption, citing the recent collapse of Terra and other projects that recorded strong growth. At the same time, they are banking on the upcoming Vasil upgrade.
In a recent video, Charles Hoskinson outlined the key outstanding steps that are needed before the hard fork. He now expects that the hard fork will happen in September of this year.
Cardano price prediction
The four-hour chart shows that the ADA price has been in a strong bearish trend in the past few months. It recently formed a bearish flag and rising wedge patterns that are shown in black. In price action analysis, these patterns are usually bearish signs.
The coin also seems to be forming a break and retest pattern, which is usually a sign of continuation. Therefore, the coin will likely resume the bearish trend in September. If this happens, the next key support level to watch will be at $0.400, which is about 12% below the current level.
Contributors
