Cardano Set To Form New Lows After Invalidating 41% Rally

·2 min read

Key Insights:

  • Cardano is about to go through the Vasil hard fork in the next 24 hours.

  • At the moment, ADA is struggling under $0.5.

  • The hype surrounding the upgrade might trigger a rally.

The Vasil hard fork is a critical moment for Cardano, and in order to make the most of it, ADA will need to create higher demand which it is not seeing at the moment.

Adhering to the broader market’s bearish trend, ADA is closer to the bottom than it is to the top currently.

Will ADA Skyrocket or Burn and Crash?

Usually, in the case of such crucial upgrades, it is before the execution that the blockchain or protocol witnesses a rise in demand. This is true in the case of Cardano itself.

Back in September 2021, before the arrival of the Alonzo hard fork, ADA ended up hitting its all-time high thanks to the high buy demand from investors.

However, the same is not being observed this time around. This could be because investors fear a repeat of the history since Vasil basically only builds further upon the smart contracts feature, which is highly important nonetheless.

This is despite the chatter in the community, ADA has not been able to recover from the almost 30% slump it witnessed this month. Since it bottomed, the altcoin only rose by 9.52% before falling back down to the lows of the current trading price of $0.47.

But this could also be considered as an opportunity to make profits. Since Vasil brings a lot to the table, its impact could induce some bullishness into the price action, making the current trading price a solid entry point.

As it is, the Relative Strength Index is teetering at the edge of the bullish zone, so Vasil might end up being just the push it needs.

Another Shot for Investors

The broader market bearishness has certainly discouraged investors from participating, and the same is visible according to the on-chain data as well. Over the last 30 days, the daily transaction has reduced from $18.9 billion to just $7.5 billion.

Since the transaction count along with the active addresses went down, this was bound to happen. However, the situation could improve from here on provided Vasil delivers on its promise.

This article was originally posted on FX Empire