The Cardano price (ADA) risks a drop in the middle of the next leveling of Ethereum Pectra, because historical models indicate that network improvements on ETH have not always increased well for ADA. Pectra is going online today, May 7, and Cardano holds the odds with an intrajurnal gain of 2% at the time of the press. However, history will rhyme and force Ada to dive and perhaps lose crucial support at $ 0.66? Let's explore.
Why Cardano Price faces the pressure of the Ethereum pectra
The battle of Cardano against Ethereum for domination has been underway for years, since the two are among the oldest layers of layer 1 in the cryptographic industry. This battle has often led to ADA in the face of a downward pressure whenever there are improvements on the Ethereum network to improve its scalability and its use.
For example, Cardano Price recorded its strongest correction in 2021 which started after the upgrade of London which introduced a mechanism to burn part of the transaction costs to make the ETH more deflationary. In 2022, ADA also refused after the merger of Ethereum which put the network of proof of work to proof of implementation.
The most recent ETH upgrade occurred at the start of last year when Cardano faced a 65% drop after Dencun. If history rhymes and the next Pectra upgrade feeds a decrease for this ETH rival, the price of the ADA risks a strong downward trend.
Imminent long liquidations put ADA in danger
If Cardano crashes and loses critical support as history rhymes, the group of long liquidations which cost approximately $ 0.66 will feed an even more steep down trend. The liquidation card shows that more than $ 5.4 million in ADA long positions will be closed if the price falls to this level, which will trigger an increase in sales pressure.
Analyst Kamil reacted To this situation, declaring that “the merchants ADA play with fire”, because the high lever effect of this Altcoin will cause the volatility of Cardano as millions of positions are closed. In addition to the long lever effect, another analyst also noted that a drop in the activity of whales and transactions will have a lower effect on the prediction of Cardano prices. He said,
“Whales are retreating and the transaction was lowered up to 83%. Always ensuring his momentum to become stable, otherwise we will adopt weakening the confidence of great players. ”
These market conditions indicate that it is likely that the price of Cardano faces the downward pressure in the coming weeks, and this will correspond to the historical models by which Altcoin has dropped when the Pectra upgrade has been put online.
However, an increase in network activity can invalidate this lower perspective towards Altcoin, as Defillama data reveals that the market capitalization of the stablescoin on the blockchain has reached a summit of all time. This indicates increased use of the network that could strengthen ADA public services.
Cardano technical analysis
The four -hour cardano table shows a mixed technical perspective ADA. The RSI has been rejected in its attempt to cross the 50, showing that the recent increase in the purchase pressure is declined, which can lead to a recovery of the downward trend represented in the descending parallel channel.
However, Cardano Price teases to break out of this channel, and the MacD formed a purchase signal after crossing the signal line. A strong escape from the lower motif will only occur if it makes a strong closure above the resistance trend line, and the RSI also makes a higher level greater than 50.
To summarize, Cardano can be on the verge of a decreased correction if history rhymes and that the next leveling of Pectra on Ethereum arouses a drop in prices. This downward thesis will not be valid if ADA can make a decisive closure of a descending trend line, as this will confirm that the trend is about to move from a negative trend to a sustained rise trend.
Frequently asked questions (FAQ)
Cardano Price can record a sharp decline in the middle of the next Pectra upgrade. History suggests that these network improvements have often preceded DIP for ADA.
The long -term market shows an influx of long positions on ADA. If the Altcoin drops and loses the level of support of $ 0.66, it will feed long liquidations which will lead to an increase in sales pressure.
The four -hour table shows a mixed technical perspective towards Ada. Altcoin is negotiated in a descending parallel channel, but also teases an upward break.
muthoni
Muthoni Mary is a seasoned analyst and writer of the cryptography market with more than three years of experience in dissection of blockchain trends, price movements and market dynamics. With a lively eye for technical analysis and an in -depth understanding of the measures on the chain, it offers insightful content and focused on data that helps investors navigate in the rapid world of digital assets.
Warning: The content presented may include the author's personal opinion and is subject to the market state. Do your market studies before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
✓ Share: