Cardano price is hovering near a key level of support as investors focus on the ongoing Vasil hard fork. ADA is trading at $0.4526, which is slightly above the important support point at $0.4372. It has struggled to move below this support level in the past few weeks. The current ADA price is about 85% below its all-time high, meaning that investors have shed billions of dollars.
Whale accumulation ahead of Vasil hard fork
Cardano price has continued bleeding in the past few weeks as demand for cryptocurrencies wane and as recession fears mount. The recent turmoil in the cryptocurrency industry coupled with the fact that Cardano ecosystem has been weak has not helped the situation,
Cardano price continued falling during the weekend as the focus remained on the upcoming Vasil upgrade. In a note last week, Input-Output said that the upgrade would bring more changes and improved performance in the network. They added that this upgrade will be the most important upgrade since the deployment of staking in 2021.
Some of the features that will be in Vasil are diffusion pipelining and important upgrades to Plutus, Cardano’s smart contract language. The language will see the addition of reference inputs, inline datums, nd reference scripts.
Still, Cardano faces many significant challenges going forward. With Ethereum about to merge, analysts believe that many developers will opt for its network instead of Cardano. Besides, Ethereum will gain more additional scalability features than Cardano. Further, Cardano is facing the challenge of slow user adoption in its network.
Cardano price prediction
Turning to the daily chart, we see that the ADA price has been in a strong sell-off in the past few days. The coin has found substantial support at $0.4372, where it has struggled moving below several times since May. The price is also slightly below the 25-day and 50-day moving averages while the Stochastic Oscillator has moved below the neutral point.
Therefore, the outlook of Cardano price is neutral with a bearish bias. A move below the support at $0.4372 will mean that sellers have prevailed and will see it drop to $0.400. This view is in line with that of InvestingCube’s S&R indicator. A move above the resistance at $0.55 will invalidate the bearish view.
