Cardano looks poised for a brief correction that could help it gain the liquidity to advance higher.
- Cardano has surged by nearly 25% over the past week.
- Bullish momentum is building ahead of Cardano’s Vasil hard fork.
- Still, technical indicators suggest ADA could retrace before printing a new local high.
Cardano looks bound for a spike in profit-taking as it struggles to slice through stiff resistance. Still, any possible correction could be short-lived as speculation mounts around the upcoming Vasil hard fork.
Cardano Hits Stiff Resistance
Cardano appears to be enjoying significant bullish momentum as the network inches closer to the anticipated Vasil hard fork.
The development firm behind Cardano, IOHK, revealed that it had successfully delivered a new node release for the upcoming upgrade. With the final testing processes underway, the team of developers is assessing whether to release Vasil on the Cardano testnet. The goal is to “ensure that any changes do not adversely affect functionality for the dApps that are already live on the network.”
ADA has risen nearly 25% over the past week as it enters one final stretch before the hard fork. It went from a low of $0.54 on Jun. 3 to hit a high of $0.66 yesterday. Now, it appears that Cardano could be bound for a brief correction before resuming its uptrend.
On the 12-hour chart, the 100-hour moving average may act as stiff resistance, preventing ADA from advancing further. Meanwhile, the Tom DeMark (TD) Sequential indicator presents a sell signal in the form of a green nine candlestick. The bearish formation anticipates a one-to-four candlestick correction.
A spike in sell orders that pushes Cardano below $0.63 could serve as the first sign of validation for this bearish thesis. Dropping below such a vital support level could encourage investors to book profits, increasing downward pressure. If this were to happen, ADA would likely drop a further 10% to $0.55.
Although the odds appear to favor the bears, Cardano will have a chance of invalidating the pessimistic outlook by slicing through the 100-hour moving average. Moving past this level and printing a 12-hour candlestick close above $0.69 would likely lead to higher highs, pushing ADA toward $0.82.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
Cardano Grows Block Size by 11% to Meet Scaling Challenges
Cardano’s core development team, Input Output, will increase the network block size by 11%. The team has also planned a memory boost for its smart contract platform, Plutus. Cardano Aims…
New Cardano DEX Hopes to Overcome Chain’s Scaling Woes
AdaSwap, a new ecosystem builder on Cardano, announced Tuesday that it had raised $2.6 million to build “the best, decentralized exchange on Cardano.” AdaSwap Raises $2.6M to Build First Working…
Cardano at Vital Support While Whales Accumulate
Cardano has reached a critical support area after incurring significant losses over the past month. Although buying pressure appears to be increasing, there are a few obstacles it must overcome…