Cardano prices are free falling, trailing the USD in the past trading week and still within a bear formation.
Technically, sellers are in charge, and it could be worse for the coin should there be losses below critical support levels, especially at $0.40, in short to medium term.
As it is, sellers may search for entries to liquidate. This preview is because ADAUSDT prices are breaking out, confirming the bears of September 13 that was also mainly defined by the bar of August 19.
A notable observation is that these bear bars are wide-ranging, with relatively high participation levels pointing to strong seller interest. Unless there are sharp gains above $0.52, ADA will likely continue tracking a bear path, even sinking to new 2022 lows in the short term.
The Vasil Hard Fork; Will ADA Rise?
Fundamentally, Cardano traders are looking at the upcoming Vasil hard fork combinator (HFC) event on September 22.
The upgrade will introduce more critical changes to Cardano, making the network more robust and enhancing scalability. Most importantly, after this upgrade, Cardano will be more fluid and boost its throughput under the Basho Phase.
Charles Hoskinson said Vasil would lay the base for the launching of even more projects on Cardano. Since ADA is the currency of Cardano, it is anticipated that this will have a massive impact on the price in the future.
Cardano Price Analysis
ADA prices are bearish when writing, dropping and aligning with the bear bar of September 13. From an effort versus result perspective, Cardano is bearish, and sellers have the upper hand, as traders target $0.40 in the short term.
Nonetheless, traders are still confident because of the major upgrade set for this week. In expectation of the high volatility, traders can wait for a clear trend definition before engaging.
Even so, any break below $0.40 in the next few days before Vasil may see the coin dump to new 2022 lows in a bear continuation pattern reflecting developments from mid-August.
On the reverse side, any reprieve that sees ADA reverse today’s losses, helping the coin rise above $0.52 ideally with high trading volumes may see the coin track higher towards $0.57 or August 2022 highs, and later $0.66.
If not, a break below $0.40 may fast-track the dump toward $0.30 in confirmation of sellers of August 19.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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