Cardano’s (ADA) long-awaited Vasyl update went live on September 22nd, promising to make the blockchain even more scalable and cheaper than before. However, this failed to bring significant momentum to the ADA market.
Sell-the-news block Cardano
The price of ADA is down approximately 9.5% since the update and was trading at $0.43 on September 26. The drop in the ADA/USD pair was accompanied by a rejection candle on the daily price chart, a fork confirmed by a short rally to $0.48 on the day, and then a spike. Correction.
ADA bulls’ muted reaction to the successful Vasyl update is similar to what happened in the Ether (ETH) market after the Ethereum merger.
In other words, buy the rumor, sell the news event, similar to most of Cardano’s previous hard forks with a history of pre-ADA price drops, as shown below.
Additionally, macro concerns led by a very hawkish Federal Reserve have weighed on the ADA’s post-Vasil bullish prospects.
The decision by the US central bank to raise its benchmark rate by another 0.75% came in the 48 hours before the Cardano update. ADA fell in 2022 with exposure to equities in response to its consistent positive correlation with equities.
As of September 26, the correlation coefficient between Cardano Token and the Nasdaq Composite was 0.83.
ADA cost eyes 40% failure.
Meanwhile, ADA technicians are drawing a downward-sloping triangle pattern for bear sightings in the near future.
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In theory, a descending triangle acts as a bearish continuation signal, meaning that the price will resolve after a decisive break below the support trend. When you do this, the price will decrease to the maximum height of the triangle.
Therefore, a break below the ADA triangle support of $0.41 could cause the price to fall to $0.25. In other words, a 40% price drop by the end of 2022.
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