Cardano (ADA) price continues to trade between the $0.42-$0.55 range since May and fails to show any significant price movement. Traders anticipate 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 plummeted after every hard fork.
Cardano (ADA) Price Risks Falling Due to “Sell the News”
Ethereum successfully completed its most anticipated Merge upgrade and transitioned to the energy-efficient proof-of-stake (PoS) consensus. However, the ETH price fell over 25% after the Merge as traders used the most anticipated event to liquidate their ETH positions. Traders believed the Merge was a “sell the news” event.
Similarly, traders consider the Vasil hard fork as a “sell the news” event. Moreover, Cardano price has always jumped before the hard fork and fell after previous hard forks including Shelley, Mary, and Alonzo.
Cardano (ADA) price is trading in the $0.42-$0.55 range since May and lacks the rally witnessed before previous hard forks. In fact, the ADA price continues to move sideways in anticipation of the Vasil hard fork. Despite the whale buying and Fed rate hikes, the ADA price has failed to show any significant movement. Traders believe Cardano looks weak and most likely to dive below after the Vasil hard fork.
Moreover, popular analyst Peter Brandt warned the Cardano (ADA) price has formed a “descending triangle” pattern on the chart. It indicates the ADA price may fall as the technical chart becomes weak. He also said the ADA price should fall, not must.
According to Dan Gambardello, founder of Crypto Capital Venture, investors must prepare for both scenarios as Cardano’s price forms a “descending triangle”. If the Cardano price breaks below, it could fall to $0.33. Also, if the price breaks above the trendline, the ADA price can rally to $1.
The Vasil Hard Fork Readiness
IOG has announced that SPOs, crypto exchanges, and DApp developers have confirmed their preparedness for the Vasil hard fork. Also, all three critical mass indicators have been achieved.
The joint IOG/Cardano Foundation team will trigger the Vasil hard fork using the Hard Fork Combinator (HFC) technology on September 22 at 21:44 UTC.