The Vasil Hard Fork for the Cardano network is a much-awaited event that aims to speed up transaction time, lower fees and increase the scalability of decentralized apps (dApps). However, it seems to bring no change in the price graph but rather a bearish trend for Cardano (ADA) as it is at risk of a major crash due to the selling of the news of Vasil Hard Fork.
Vasil Follows the Trails of Hard Fork Ethereum Merge
Prior to the announcement of the Vasil hard fork, Cardano was on a bearish trend, but soon after the news hype saw its price rise by 25%. Anticipation of the much-anticipated upgrade to the Cardano network has caused investors and traders to start investing in ADA and drive up its price. However, it seems that the hype will be dead as people are willing to sell their stake after the upgrade to the second level of the network.
We can refer to this price action of ADA to ‘Buy the rumor, sell the news as the anticipation of the Vasil hard fork will no longer be emerging to bring an upward price action after the upgrade. This means that when an event or upgrade is announced, people start buying that crypto project with speculation that it will bring fruitful returns.
Due to mass buying, the price of crypto goes up, but when the event is over, there is no one left to raise the price of crypto or continue buying. Thus, it induces people to sell their profits after the event, resulting in a price crash.
According to our analysis, the same had happened with the Ethereum Merge as Ethereum saw a significant price hike before the Merge as investors were making big investments in their ETH positions, helping Ethereum with a rise from $1,600 to a high of $1,786 before the merge event.
But after the merger, the price of ETH fell sharply by 25% as traders and investors began liquidating their ETH positions to take profits. According to CoinMarketCap, ETH is currently trading at $1,292, down by 4.74% from yesterday’s price.
What Lies Next For ADA?
The ADA price is currently trading near $0.45. Cardano (ADA) price has been trading sideways in the $0.42-$0.55 range since May, and it has not seen much price action, which was expected due to the hype of the Vasil Hard Fork.
Despite Fed rate hikes and whale moves, ADA price has failed to show any significant movement on either side of the graph. Analysts in the cryptocurrency community believe that Cardano has become numb and weak, and that its price could fall further after the Vasily hard fork.
Famous technical analyst Peter Brandt warned investors that ADA had formed a descending triangle in the price graph, indicating a major crash ahead in the price chart. Dan Gambardello, the founder of Crypto Capital Venture, advised investors to be prepared for both side movements as Cardano forms a descending triangle. If Cardano starts a bearish moment, it can drop to a price level of $0.33. Meanwhile, on the upper side, ADA can surge to $1 if it breaks the trendline.
