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ADA is down 3% in the past day.
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A bug report in one of Cardano’s testnets is likely to delay the Vasil upgrade.
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The technical indicators are looking bearish below the $0.56 resistance level.
Cardano’s ADA/USD is down 3% in the past day, increasing the weekly loss to 19%. Its market cap has dropped to $15,218,450,837 with low trading volume. ADA trading volume declined 8% on the previous day to a little over $650 million.
The bearish momentum in Cardano is partly tied to the ongoing crypto market correction. In addition to the improvements, an important fundamental aspect has rocked the smart contract blockchain. A bug reported in its testnet could delay the anticipated Vassil hard fork.
Cardano founder Charles Hoskinson has denied the claims, describing the testnet as ‘catastrophically broken’. Hoskinson said the bug had already been resolved in a previous update and was not a major problem. He says the concerns may unnecessarily delay the hard fork.
The Vasil upgrade is expected to introduce major updates to Cardano. Some of the benefits include increased throughput speed and lower latency of block transmissions. However, there have been several delays, with the latest being in July. As shown in the daily chart below, ADA is underperforming due to delays.
ADA tests the $0.4 support again
Source: TradingView
As per the technical chart above, ADA has reclaimed the $0.43 support level. The level has been retested several times since mid-May. Overall, the token has remained under $0.56 for the past three months.
Technical indicators are also not looking bullish. MACD histograms are red, with trend following lines crossing close to the neutral point. The Stochastic Oscillator is at its lowest level since July 13.
At 11 o’clock, the momentum indicator is in the oversold zone and could be due for a bounce back. However, with bearish momentum, the coin should flip to $0.56 to welcome any bullish sentiment.
closing thoughts
ADA has retested a key support level. Technical and fundamentals are pointing to more bearish pressure. Bullish momentum is only possible after the $0.56 resistance level.