Cardano (ADA) price has continued to trade between $0.42-$0.55 since May and is showing no significant price movement. Traders expect the ADA price to fall after the Vasil hard fork due to the “buy the rumor, sell the news” similar to the ETH price after Ethereum Merge. Historically, the Cardano price has always fallen after each hard fork.
Cardano (ADA) Price Risks Fall on “Sell the News”
Ethereum has successfully completed the most anticipated Merge upgrade and moved to the energy-efficient proof-of-stake (PoS) consensus. However, the ETH price fell more than 25% after the Merger as traders used the most anticipated event to liquidate their ETH positions. Traders believed the Merge was a “sell the news” event.
Similarly, traders view the Vasil hardfork as a “sell the news” event. In addition, Cardano price has always jumped before the hard fork and dropped after previous hard forks including Shelley, Mary and Alonzo.
Cardano (ADA) price has been trading in the $0.42-$0.55 range since May, missing the rally seen before previous hard forks. In fact, ADA price continues to move sideways in anticipation of the Vasil hard fork. Despite the Fed’s whale purchases and rate hikes, the ADA price has shown no significant movement. Traders believe Cardano is looking weak and most likely to plunge down after the Vasil hard fork.
In addition, popular analyst Peter Brandt warned that the Cardano (ADA) price has formed a “descending triangle” pattern on the chart. It indicates that the ADA price could fall if the tech card gets weak. He also said that the ADA price should fall, not should.
According to Dan Gambardello, founder of Crypto Capital Venture, investors should prepare for both scenarios as Cardano’s price forms a “descending triangle”. If the Cardano price falls below, it could drop to $0.33. If the price moves above the trendline, the ADA price may also rise as high as $1.
The Vasil Hard Fork Readiness
IOG has announced that SPOs, crypto exchanges and DApp developers have confirmed that they are prepared for the Vasil hardfork. All three critical mass indicators have also been reached.
The joint IOG/Cardano Foundation team will activate the Vasil hard fork using the Hard Fork Combinator (HFC) technology on September 22 at 21:44 UTC.
Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a significant period of time and is currently covering all the latest updates and developments in the crypto industry.
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