On Saturday, Cardano (ADA) experienced a minor price drop of 0.37%, settling at $0.34 in a relatively stable market environment. As Bitcoin held its ground above $60,000, most major altcoins, including ADA, entered a consolidation phase after a mid-week rally. Investors are now wondering whether Cardano’s price will regain its upward momentum with the new Hydra update or continue its downward trend.
Hydra Update 0.18.0 Released
Sebastian Nagel, a core developer for Cardano, recently announced the release of Hydra version 0.18.0. This latest update significantly enhances the protocol, enabling users to withdraw funds from an active head without the need to close it, thus increasing the system’s overall flexibility. The update also includes documentation improvements, fixes to internal wallet fee calculations, and preparations for the forthcoming Conway upgrade. Additionally, Nagel hinted at an exciting demo to be unveiled at the Rare Evo event.
Despite the rollout of Hydra 0.18.0, ADA’s price has remained relatively unchanged, hovering around $0.34 with sideways trading. This lack of price movement suggests a lack of strong buying interest following the Thursday rally, indicating weak market conviction.
Bearish Signals for Cardano Price
Earlier this week, Cardano’s price rebounded from $0.275 to $0.346, achieving a 25% gain. This increase was driven by the broader market recovery and positive sentiment surrounding the Chang Hard Fork and Hydra update. However, a closer analysis of the daily chart reveals the formation of an expanding channel pattern, characterized by two diverging trendlines. This pattern often reflects investor uncertainty and could signal a potential extended downturn.
Moreover, the bearish alignment of the daily Exponential Moving Averages (20, 50, 100, and 200) suggests that the path of least resistance for ADA might be downward. If market concerns about further correction persist, ADA’s price could drop below the $0.34 level, which is currently supported by the 20-day EMA. A deeper decline could see the price falling 18% to seek support around $0.28.
On the other hand, if ADA manages to break above the 20-day EMA, it could be a sign of renewed buying strength, potentially leading to a 22% rise toward $0.423. However, this upward movement would face significant resistance from the upper trendline of the expanding channel pattern.
In summary, while Cardano’s price remains in a precarious position, the coming days will be crucial in determining whether it can resume its recovery or if the bearish signals will lead to further declines.
