Cardano’s bulls run out of steam after Vasil’s hard fork – 40% of ADA price collapses while playing

Cardano’s (ADA) long-awaited Vasil update launched on September 22, which promises to make the blockchain more scalable and cheaper than before. However, this failed to generate the bullish momentum for the ADA market.

impedes the sale of news Cardano

ADA price is down about 9.5% since the update and was turning to $0.43 on September 26th. The decline of the ADA/USD pair was accompanied by a rejection candle on the daily price chart, confirmed by a short rise to $0.48 on the day. of the fork and a sharp correction afterwards.

The ADA bulls’ muted reaction to Vasil’s successful update is similar to what happened across the Ether (ETH) market after the Ethereum merger.

In other words, rumor buy, news event sell, most like Cardano’s previous hard forks, which have a prior history of ADA price crashes, shown below.

ADA/USD 3-Day Price Chart. Source: TradingView

In addition, macroeconomic risks led by the very hawkish Federal Reserve weighed on the bullish ADA outlook after Vasil.

The US central bank’s decision to raise benchmark interest rates by another 0.75% came in the 48 hours prior to Cardano’s update. ADA declined along with risk assets in response, given its continued positive correlation with stocks throughout 2022.

As of September 26, the correlation coefficient between the Cardano token and the Nasdaq token was 0.83.

ADA/USD and Nasdaq daily correlation coefficient. Source: TradingView

ADA eyes crash rate 40%

At the same time, the ADA technical indicators are drawing a bearish triangle formation with a bearish outlook in the near term.

RELATED: Charles Hoskinson and ETH dev get into a war of words after Vasil’s promotion

In theory, a descending triangle in a downtrend acts as a bearish continuation signal, which means that it recovers after the price decisively breaks below the support trendline. In doing so, the price decreases by the maximum height of the triangle.

ADA/USD three-day price chart featuring a descending triangle split setup. Source: TradingView

Therefore, any breakdown below the $0.41 ADA triangle support could lead the price to collapse towards $0.25. In other words, 40% lower prices by the end of 2022.

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from San Jose News Bulletin https://sjnewsbulletin.com/cardanos-bulls-run-out-of-steam-after-vasils-hard-fork-40-of-ada-price-collapses-while-playing/