Back to the list

Cardano’s Vasil hard fork launches on testnet positioning ADA price for a breakout

www.fxstreet.com 04 July 2022 05:39, UTC
Reading time: ~2 m

  • Cardano price is hovering above the $0.435 support level, trying to establish directional bias.
  • ADA may trigger a 25% bounce if the $0.435 platform holds.
  • A four-hour candlestick close below $0.435 will result in a 12% drop to $0.380.

Cardano price is at a point in its journey where things could go either way. As ADA consolidates above a stable support level, things could turn ugly if it breaks or bullish if it bounces. Therefore, investors need to be careful with their decision.

Moreover, the upcoming Vasil hard fork is bound to add volatility to this expected price action for ADA. In a recent tweet, the IOHK team confirmed the successful launch of the hard fork on the testnet and will let it run for four weeks and watch for failures or bugs. During this time, IOHK will be closely working with the dApp developers, Stake Pool Operators (SPOs) and other members of the community.

The tweet further stated,

As soon as we are confident ecosystem partners  are comfortable & ready, we'll submit an update proposal to upgrade the #Cardano mainnet to #Vasil.

Cardano price remains indecisive

Cardano price shows the formation of a triple tap setup, which is a variation of a triple bottom. This technical formation typically contains the formation of a swing low followed by a deviation below it. The last step includes the asset retesting the formed low, which often results in a bullish move.

For Cardano price, this swing low was formed on June 13 at $0.435 and ADA deviated below it on June 18. The final retest was on June 30 but the altcoin seems to be silent with no volatility due to the ongoing consolidation.

A breakout from this coiling could result in Cardano price triggering a 25% ascent to $0.550. However, this move is not without trouble and hurdles; the $0.470 resistance barrier needs to be flipped into a support floor for a swift move to the target at $0.550.

ADA/USDT 4-hour chart

ADA/USDT 4-hour chart

While things are looking up for Cardano price, it is based on the assumption that the altcoin bounces from the $0.435 support floor. However, a failure to do so could paint a bearish picture. A four-hour candlestick close below the aforementioned barrier will invalidate the triple tap setup. 

In such a case, ADA needs to quickly recover above the said level to have any chance at a rally. A failure to do so will result in a 12% drop to retest the weekly support level at $0.380.

Back to the list