Cardano Price Prediction: Can ADA Hold Support Amid Ethereum’s Pectra Upgrade?

Bitcoin is at $96,968, down 0.39% today, while Cardano (ADA) is at $0.682, struggling to break above $0.6890. Ethereum’s Pectra upgrade that went live on May 7 could be bad news for Cardano as historical trends show that Ethereum’s upgrades often lead to declines for its competitors, including Cardano.

Cardano’s price has always faced downward pressure after Ethereum network upgrades aimed at increasing scalability and network usage. In 2021, the London upgrade that introduced the transaction fee burn mechanism led to a big drop in ADA’s value. After Ethereum’s shift to proof-of-stake through the Merge in 2022, ADA declined. If this pattern repeats, Cardano could be in for a big downtrend after Pectra.

Technical Outlook and Key Levels for ADA

ADA is currently at $0.682, testing the descending trendline that has been resistance since late April. The 50-period Exponential Moving Average (EMA) at $0.677 is the immediate support, the MACD is bullish. But the MACD is showing a bullish trend.

Text:

• Buy Above: $0.690 (Breakout Confirmation)

• Stop Loss: $0.666 (Below Key Support)

• Take Profit: $0.707 (Next Resistance)

If ADA fails to hold above $0.677, it could retest $0.666 or even the broader $0.6430 zone and reverse the recent upmove.

Long Liquidations and Whale Activity is a Risk

One major risk for Cardano is long liquidations. If ADA drops to critical support levels especially $0.66, it could trigger a liquidation cascade. Over $5.4 million in long positions are at risk which could add to the selling pressure.

Also, decreased whale activity and lower transaction volumes are bearish for Cardano. Analysts note a big drop in whale transactions (down 83%) which could further erode confidence in ADA.

Can ADA’s Momentum Turn Positive?

But there are some positives for Cardano. DeFiLlama shows a big increase in stablecoin market cap on Cardano blockchain which means more network activity and that could be good for ADA.