ADA has been a dominating member of the crypto world since 2017. The current scenario demanding improved scalability solutions is creating intense developments on this blockchain. Developing from Alonzo Hard Fork to the latest Vasil Hard Fork, the outlook for ADA and its scalability is improving despite the dark cloud of the crypto world.
Although the event has been delayed from its original timeline of June 2022, this blockchain’s capabilities will only improve in the coming days. This Hard Fork will add five different elements, CIP 31, CIP 32, CIP 33, CIP 40, and the diffusion layer.
The last layer would be adding scalability to the consensus scaling improving the fundamentals of ADA. The current market capitalization of ADA is above $13 billion, with 76% liquidity of the entire supply, enabling ADA to take over as the 8th strongest cryptocurrency network.
Cardano’s price action has been more inclined towards a negative direction since the support level for bounce-backs that aided in preventing multiple downsides has been breached.
The minor buying spike witnessed here could be a trap for a further falling potential. Technical indicators confirm that the trend is going south, and buyers will be trapped until ADA develops a new support level. Check out our Cardano price prediction for better clarity of future price projections.
Cardano price action has undergone its fair share of volatility, but breaching support after support, when the buyers are unable to cope with selling pressure from fresh highs, indicates a troubling sign. RSI indicator alone has slipped to level 31, with MACD barely managing to hold a further decline possibility.
Weekly charts showcase a resistance development at the $0.589 level, which has now become unbearable for ADA to hold on to. The frequent testing of its previous support level of $0.4 has finally given away, making room for a decline to $0.15. Transactional volumes have taken yet another hit, slipping to a mere shadow of what was a year ago.
A retracement might be expected, but it could bring a renewed buying rally in the current backdrop of a negative outlook. Since hitting the ceiling of $0.6 several times, the sensation of a strong resistance has made a home in buyers’ mindset, who are now considering $0.6 as the profit booking level. The breach of its immediate support level has created further challenges for buyers to hold their ADA.