Cardano Prepares To Go Above $1 As Hard Fork FOMO Looms

Cardano prepares to go above $1 as the hard fork FOMO looms and investors hope to bring them another price rally like in the past so let’s read more today in our latest Cardano ADA news.

Cardano was among the best performers among the top cryptocurrencies in June as the traders assessed a key upgrade that promised to enhance the blockchain smart contract capabilities. Dubbed Vasil, the hard fork event will take place on June 29 and as a result of the euphoria about it, the traders speculated another ADA upside which will result in better performance than other digital assets.

Thanks to the excitement surrounding its upcoming Vasil Hard Fork, #ADA surged over 20% to become one of the best-performing cryptos last week.

Prices as of now:#ADA – $0.637400#LINK – $7.98#XLM – $0.149126#UNI – $5.34

Buy/sell crypto futureshttps://t.co/QgaS0WtKde pic.twitter.com/1DWDxwFJ3Z

— BTCC (@YourBTCC) June 6, 2022

For example, ADA’s price increased by over 14% to $0.64 compared to the 6% gains on ETH on Juen 6. Cardano’s price history shows there was similar behavior among traders before the other hard fork events. For example, the Alonzo upgrade in September 2021 introduced smart contract functionalities to the network and preceded a 200% plus ADA price rally and similarly, the MARY hard fork also preceded ADA’s 1600% rally.

The previous price rallies which led to the hard fork events happed in an expansionary macro environment and at the time the interest rates were about zero with the FED buying $120 billion worth of government bonds each month. Right now, the US central bank turned hawkish after witnessing higher inflation so many analysts argued that there’s less US dollar liquidity to buy riskier assets like stocks and crypto. Cardano reeled under the pressure of the Fed tightening with ADA trading about 80% lower than the September 2021 peak of $3.15. The downside move includes major bounces as well as can be seen in the charts.

Cardano prepares to go above $1 as ADA test a resistance confluence that comprises a falling trendline and the 50-day exponential moving average close to the $0.66 and the horizontal trendline near $0.62. Breaking above the resistance could trigger a double bottom breakout. As a rule of technical analysis, the traders measured the double bottom’s breakout target by adding a distance between the bottom levels and the neckline to the breakout point which pains a target of $0.87 or a 40% increase from June’s price.

A follow-up rally can see ADA testing the 200-day exponential moving average near the $1 level but a pullback seems more likely.