Cardano (ADA) is very close to falling below its yearly lows. It could confirm its bearish outlook with a decrease below $0.423.

The Cardano Vasil upgrade is expected to launch on Sept. 22. It will greatly increase the throughput capabilities and Network capacity of Cardano. Additionally, it will allow Decentralized Application (DApp) developers to create new experiences.  

Even though Vasil will be deployed at the protocol level on Sept. 22, several new capabilities will be available only during the next epoch, more specifically on Sept. 27. 

/Related

MORE ARTICLES
FTX: How to Prevent a Similar Dumpster Fire
MarketsFeature

FTX: How to Prevent a Similar Dumpster Fire

Dec 30, 2022 12 hours ago
FTX Japan Will Begin Customer Refunds In February 2023
MarketsNews Report

FTX Japan Will Begin Customer Refunds In February 2023

Dec 30, 2022 11 hours ago
Pi Network (PI) Listing Sparks Controversy as Price Skyrockets
MarketsNews Report

Pi Network (PI) Listing Sparks Controversy as Price Skyrockets

Dec 30, 2022 11 hours ago
Stablecoins Dominate the Trading Volume in the Last Crypto Friday of 2022
MarketsNews Report

Stablecoins Dominate the Trading Volume in the Last Crypto Friday of 2022

Dec 30, 2022 13 hours ago
This Week in Crypto: SBF Gets Bail, Solana Dumpster Fire Continues and Could BNB Be a Security?
MarketsRoundup

This Week in Crypto: SBF Gets Bail, Solana Dumpster Fire Continues and Could BNB Be a Security?

Dec 30, 2022 13 hours ago
AI Chatbots Could Become the Future of the Metaverse
MarketsNews Report

AI Chatbots Could Become the Future of the Metaverse

Dec 30, 2022 14 hours ago

Vasil is the most comprehensive upgrade since Alonzo, which occurred during the fall of 2021.

Ongoing decrease

ADA has been decreasing underneath a descending resistance line since reaching an all-time high price of $3.10 in Sept. 2021. The downward movement has led to a low of $0.40 in May 2022. 

The low was made just above the $0.36 horizontal support area, which acted as the top in May 2018. 

While the price has bounced slightly afterward, it has yet to reach the aforementioned descending resistance line. Furthermore, the weekly RSI has yet to break out from its bearish divergence trendline (green). Both of these have to occur in order for the trend to be considered bullish.

Weekly decrease ADA/USDT Chart By TradingView

ADA wave count analysis

ADA is likely decreasing in a five-wave downward movement (black) since the Aug. 2021 all-time high. If so, it has just begun wave five after completing wave four inside a symmetrical triangle.

If the count is correct, the price will break down from the triangle and then fall towards one of the closest support levels at $0.32 or $0.22. The targets are given by the 1.27 and 1.61 external Fib retracement levels respectively when measuring the height of the triangle. 

A breakdown below the $0.427 low (red line) will confirm this count while an increase above $0.594 high (green line) would invalidate it. At the current time, the latter seems unlikely.