ADA has lost 7% in the past day amid waning momentum
Cardano’s Vasil Upgrade is expected to be a game-changer in the network
Cryptocurrencies are currently facing a sell-off ahead of the Fed meeting
Cardano ADA/USD fell 7% over the past day to consolidate weekly losses at 14%. The token is currently trading at $0.4398. Despite being an important token, Cardano is struggling to find a unique utility over the top cryptos.
Pressure on the scalability aspects of the layer-1 blockchain continues to mount. The Vasil upgrade, scheduled for September 22, is expected to change that. The network’s founder, Charles Hoskinson, said the effect of the fork would be felt as early as September 27.
Vasil’s upgrade has been hampered by several delays. The setbacks were due to bugs and technical issues. Nevertheless, the fork remains the most ambitious upgrade in Cardano. The benefits include scalability, increased throughput, efficiency, and a reduction in block transmission latency.
Taking a broader view, Cardano’s price is taking a hit from macro factors. Investors expect the US Federal Reserve to raise interest rates this week. High interest rates are expected to shift investment away from riskier assets such as cryptocurrencies. Sentiment has pushed major cryptocurrencies, including bitcoin, into the red area. From the technical chart below, ADA is at the bottom of a consolidation.
ADA trades at the bottom of a horizontal tunnel
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The daily chart above shows that ADA has retested the $0.43 resistance level. Currently, momentum looks largely bearish. The MACD shows bearish histograms as more sellers enter the market. The RSI is at 41, which reduces the chance of a possible short-term trend reversal.
For investors looking to grow their portfolio in a bear market, Cardano offers minimal opportunities. The token is looking extremely bearish and could easily lose the current support. For the upcoming Vasil upgrade, ADA has priced in a price. If the current support holds, ADA will face immediate resistance at $0.49.