Cardano Price Prediction: ADA Price to Test Annual Lows Around $0.40 Next?

Key Points

• Cardano is stabilized in the $0.45 per token area on Saturday after dumping over 12% on Friday.
• The cryptocurrency is currently on course to post a 20% weekly drop amid a broader crypto downturn.
• Technical selling has also been attributed as hurting ADA this week after a key technical breakout.

Cardano to Test Annual Lows Around $0.40 next?

ADA, the native token of the Cardano blockchain, is stabilizing in the $0.45 per token area on Saturday in tandem with a broader consolidation across cryptocurrency markets following Friday’s sharp drop. ADA dumped over 12% on Friday, its worst one-day performance since mid-May and is currently on course to have shed 20% of its value this week, which would mark its worst one-week drop since January.

A downturn in broader cryptocurrency market sentiment, as well as in global risk assets like US equities, amid jitters about the hawkish tone of Fed policymakers this week has been attributed as behind much of Cardano’s latest recent drop. While officials differed in their opinion as to how fast and high interest rates should be lifted, they were unanimous in their agreement that the battle against inflation remains far from won and remains their utmost priority. That triggered some concerns that markets might be underestimating the Fed’s resolve to lift interest rates and hold them at elevated levels in 2023.

But technical selling has also been at play, with Cardano earlier this week breaking below an uptrend that had been supporting the price action since mid-July, which seemed to trigger a cascade of sell pressure. Now that ADA has hit late-July support in the $0.45 area, bears are eyeing a test of annual lows in the $0.40 area.

Charles Hoskinson Refutes Claims of Vasil Upgrade Being Rushed

Cardano founder Charles Hoskinson has responded on Twitter to claims that the blockchain’s upcoming Vasil hard fork is being rushed, after a bug was identified in version 1.35.2 of the fork that had “catastrophically broken” Cardano’s testnet.

“It’s bizarre and alarmist seeing these videos floating around that things are being rushed with 1.35.3,” Hoskinson said, adding that “the code in question has been thoroughly tested for months by everyone including SPOs and that “the code that was an issue on the testnet has been removed”.

Hoskinson said that the Cardano community “could delay the launch of Vasil for a few months to retest code that’s already been tested a dozen times and is already running”. But he questioned whether this would be “worth it to all the DApp developers who have been waiting for this update for almost a year now?”.

Hoskinson signed off by saying that Cardano’s SPOs ultimately decide what happens, as it is decentralized, and that he is “tired of taking the blame on both sides”.

It's bizarre and alarmist seeing these videos floating around that things are being rushed with 1.35.3. The code in question has been thoroughly tested for months by everyone including SPOs. The code that was an issue on the testnet has been removed.

— Charles Hoskinson (@IOHK_Charles) August 19, 2022