Cardano price burps small profits post-Vasil hard fork

Cardano price burps small profits post Vasil hard fork
Cardano price burps small profits post-Vasil hard fork

On Sept. 22, the long-anticipated Vasil update for Cardano (ADA) went live, which claims to make its blockchain more scalable and cost-effective than ever. However, this has failed to provide the ADA market with a boost of optimism.

In the past 24 hours, ADA has traded as low as $0.4394  and is currently trading at  $0.4574. 

This move comes after an impressive run-up in the weeks leading up to the hard fork update, during which ADA hit a new all-time high of $0.69. ADA trading volume is $633,227,079 and a market capitalization of $20,478,790,051

ADA/USD daily price chart. Source: TradingView
ADA/USD daily price chart. Source: TradingView

The bullish momentum appears to have fizzled out after the hard fork, with the market now turning bearish. One possibility is that traders are taking profits after the huge run-up in ADA’s price. Another possibility is that the market is disappointed with the Cardano Foundation’s decision not to provide a clear roadmap for the project. 

ADA’s price is now bullish on the 1-day chart, with the MACD and RSI indicators showing bullish momentum.

The bulls need to push ADA’s price above the $0.50 psychological level to confirm a reversal of the recent sell-off. Above this, ADA could target the $0.60 resistance level. However, if the bears can push ADA’s price below the $0.40 support level, a deeper sell-off could be on the cards.

It is worth noting that the Cardano community appears to be highly confident in the project’s long-term prospects.

This is evidenced by the fact that ADA staking continues to increase, with more and more people looking up their ADA to earn rewards. This suggests that the recent sell-off could be an opportunity for long-term investors to buy ADA at a discount.

The positive reaction of ADA investors to the recent Vasil update is reminiscent of what occurred in the Ether (ETH) market following Ethereum’s Merge. After months of hype, Ethereum’s hard fork finally arrived, and ETH prices soared in the aftermath.

However, the euphoria is short-lived, and ETH prices will begin to slide.

Cardano team addressed the issue of Hydra’s node

The Cardano team has successfully addressed a known issue with Hydra’s node framework in the most recent upgrade.

The protocol does not yet have a fixed release date, but the IOHK team has indicated that the service might arrive in the market by late 2022 or early 2023. The firm is also working on a new update called Goguen, designed to improve the functionality of smart contracts on the Cardano blockchain.

The recent Vasil update is a positive development for Cardano. However, it remains to be seen if this will be enough to reignite the market’s interest in ADA.

A similar scenario may be playing out in the ADA market. The Vasil update may have been enough to trigger a short-term rally, but the long-term effects may be less positive.

Investors should exercise caution in the ADA market in the days and weeks ahead. If prices continue to fall, it could signal that a more prolonged downtrend is underway.

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Cardano, Cardano price burps small profits post-Vasil hard fork

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