- Cardano has fallen from Wednesday’s highs near $0.55 amid a broad crypto pullback on Thursday.
- ADA was last trading near $0.49 and below its 50DMA at $0.4950, spurring fears of a further drop.
- But a retest of support around $0.46 could attract buyers and spur a recovery towards $0.55 once again.
Cardano Pulls Back 10% from Wednesday’s High, Slips Under 50DMA
Having rejected a test of a key area of support-turned-resistance in early June around $0.55, the native token to the Cardano blockchain ADA has slipped back below the $0.50 per token level. In doing so, the cryptocurrency has also fallen slightly back under its 50-Day Moving Average at $0.4950, though has stabilized above earlier session lows in the mid-$0.47s.
ADA, now more than 10% lower versus its Wednesday peaks, appears to have succumbed to broad pressure seen across cryptocurrencies. Some analysts cited profit-taking. Others cited the news of Tesla having sold down its Bitcoin holdings in Q2 and of fresh casualties in the ongoing crypto winter as weighing on crypto sentiment a tad.
But Cardano still trades well over 20% higher versus its multi-week lows posted just over one week ago. Indeed, with macro sentiment still looking fairly upbeat and major US equity indices eyeing a further push higher in pre-market trade, the ADA bulls will remain hopeful that the cryptocurrency can retest recent highs before the week is out.
Ahead, crypto traders will be watching the ECB’s monetary policy announcement at 1215GMT to see whether they raise interest rates by 25 or 50 bps and whether this impacts crypto via any FX market ructions. US economic data in the form of weekly jobless claims and the July Philadelphia Fed Manufacturing survey at 1230GMT are probably also worth watching, though probably won’t impact sentiment much.
Cardano Price Prediction: ADA to Fall Back to $0.46 Area Before Bouncing?
With Cardano having seen its recent bullish momentum since breaking above a downtrend from mid-June wane, and with the cryptocurrency having also now fallen back under its 50DMA, further near-term losses may be in store. But if ADA does retest the downtrend that, up until this week, had been capping its upside since mid-June, in the $0.46 area, that might attract buyers and spur a rebound back above $0.50 and towards weekly highs. The 21DMA will also be offering support in this area.
Cardano Tops Santiment Developer Activity Ranking Ahead of Vasil Hard Fork
According to new rankings put out by crypto analytics firm Santiment, Cardano has seen the highest development activity in the last 30 days, surpassing the likes of Ethereum, Polkadot and its test experimental so-called “Canary” network Kusama. Santiment compiled the ranking by looking at the number of submissions, code pushes and interactions each crypto project saw on open-source code-sharing website GitHub.
🧑💻 $ADA, $DOT, $KSM, $ETH, and $MIOTA lead in development activity here in July. Measuring #github activity goes beyond just quantity of submissions. We measure via code pushes, issue interactions, & more: https://t.co/vWQCE4r4pv
— Santiment (@santimentfeed) July 19, 2022
Santiment gave Cardano a developer activity score of 387.33, Polkadot and Kusama scores of 281.97 and Ethereum a score of 274.87. Strength in Cardano development activity comes ahead of the blockchain’s much anticipated Vasil hard fork upgrade scheduled for later this month. Cardano’s developers say that the upcoming upgrade is the most complex program of development and integration on Cardano since its Alonzo hardfork added smart contract functionality to the blockchain back in September 2021.
The Vasil hardfork aims to improve the network’s speed and scalability by reducing transaction size and, as a result, increasing the network’s throughput whilst also lowering transaction fees on the network. The upgrade was initially scheduled to take place at the end of June but was delayed by Cardano’s developer Input Output Hong Kong (IOHK) out of an “abundance of caution” given the presence of a few minor bugs.
Once Cardano’s Founder Announces Date for Hard Fork, “This Puppy Will Rip”
According to a tweet from prominent crypto analyst and educator Lark Davis on Wednesday, given that Cardano recently surpassed its 50DMA, all that is needed now is for “Charles (Hoskinson, Cardano’s founder) to announce the date of the Vasil hard fork and this puppy will rip!”.
— Lark Davis (@TheCryptoLark) July 20, 2022
According to a survey of 53 FinTech experts conducted by researchers at finder.com last week, a majority of participants were bullish on the cryptocurrency in the years ahead. The median forecast from the experts was for ADA to recover to around $3 by 2025, before hitting $7 in 2030.
While still bullish, this is far less optimistic an outlook than that given by experts in a similar survey conducted back in January. Back then, when Cardano was trading in a $1.1 to $1.6 range versus current levels under $0.50, experts saw the cryptocurrency ending the year closer to $30 and hitting $58 by 2030.
Experts responding to finder.com’s survey were split over how the upcoming Vasil hardfork will impact Cardano. 20% said it would positively impact ADA’s price, 18% said it would have an adverse effect, while 50% said it would increase the functionality of the Cardano blockchain.