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Will Cardano’s July Hard Fork Update Save it from a 60% collapse

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TThe ADA price point currently is above a pivotal support level in the days leading up to the hard fork update for the Cardano platform. THe coin has started to indicate a bearish pattern on more long term timeframe measurements raising concerns by some that an August bound price crash is on the way. 

The pattern, the “bear pennant,” is characterized by a price consolidation in the range defined by decreasing trendline resistance and rising trendline support after a strong downward movement. The consolidation moves alongside a decrease in trading volumes. 

The bear pennant pattern usually sees a resolve after a price break below the trendeline support. As a rule, it may fall by the same magnitude of the high of its previous downtrend. This is called a “flagpole.”

The result of this bear pennant pattern may be a decline of 60% down to $.20, its price on June 28th. ADA does however show signs of consolidating inside the pennant range despite the bias looking skewed toward bulls. This may open ADA/USD up to a bounceback from the rising trendline support at around $.46 which will then rally toward its falling trendline resistance of around $.60 in July. 

There is still some hope for Cardano with its upcoming Vasil Hard Fork Upgrade. Originally scheduled for the end of June, it is set now for some time and July. This upgrade  will improve the speed and scalability of the Cardano network. The upgrade is also expected to add more developer friendly features to attract more projects to the platform. The ADA price has a habit of rising during the days just before Cardano hard fork upgrades which may boost the chances of a rally, however, will probably need to be aided by other factors in order to skip the bear pennant. 

It is almost certain that a plunge is on the way as Cardano’s hard fork upgrades are usually followed by a drop in the price of ADA. It may resume its downtrend after Vasil hits the public in July, which may be aided by the bear pennant currently indicated by market analytics.

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