On Monday, Cardano (ADA) held steady at $0.165 after a slight uptick last week. The Van Rossem hard fork was activated on Saturday, representing the first time Cardano’s protocol upgrade was fully approved through on-chain governance. This new version, version 11, is designed to lower the costs associated with smart contracts. However, despite these promising developments, mixed signals among traders are limiting ADA’s recovery potential.
Van Rossem hard fork enhances Cardano’s future outlook
The recent activation of the Van Rossem hard fork has been a significant milestone for Cardano, being the network’s first major upgrade approved via on-chain governance.
This upgrade aims to introduce new features for Plutus and enhance the cost model, making it cheaper to operate smart contracts. After all, a solid technical foundation is key for future development.
While this upgrade may serve as a long-term positive factor for ADA, boosting its smart contract capabilities and overall network performance, it hasn’t shifted short-term sentiment significantly. On Monday, ADA’s price remained flat at around $0.165, slightly recovering after last week’s struggles.
Mixed sentiment hinders recovery
Current derivatives indicators reflect a mixed sentiment among traders. Coinglass’ funding rate data for ADA turned positive earlier this week, showing a reading of 0.0061% on Monday. This suggests that long positions are paying shorts, which is typically a good sign for market sentiment.
Yet, Coinglass’ ADA long-short ratio was at 0.90 on Monday. Anything below 1 generally points to bearish sentiment, meaning many traders expect the asset’s price to decline.
Cardano Price Analysis: ADA hovers sideways
As of Monday, Cardano’s price stands at $0.165, following a slight recovery last week. Even with this modest rise, ADA is still displaying a bearish trend. Its price lingers below the 50-day, 100-day, and 200-day exponential moving averages (EMAs), which are roughly between $0.180 and $0.270. The asset’s performance has stagnated after a rally in early July, with sellers maintaining control at the lower Fibonacci retracement from the earlier decline between April and June. The Relative Strength Index (RSI) is flat, just below 50, indicating no strong directional movement. Likewise, the Moving Average Convergence Divergence (MACD) is slightly positive but lacks significant momentum, reflecting an overall subdued action in the market.
For potential upward movement, initial resistance is noted at the 23.6% Fibonacci retracement level around $0.173, followed by the 50-day EMA at $0.177, which bulls need to surpass for a more robust recovery. Further resistance levels include the 38.2% retracement at $0.195 and the breakdown trigger zone near $0.202, coinciding with the 100-day EMA at $0.205, before reaching a tighter resistance range between $0.231 and $0.245, as well as the long-term 200-day EMA at $0.273.
If the price moves downward, immediate support is identified at the $0.150 level, while the previous low around $0.138, near the 0.0% Fibonacci anchor, could serve as a deeper target if selling pressures intensify.
