Cardano may be ready for a bull-run, but ADA will share the common goal

Cardano [ADA] is set to release the new Vasil hard fork this month. However, the blockchain also recorded a commendable performance last week, gaining more than 5% over the past seven days.

With this, it outperformed many other cryptocurrencies with higher market capitalization, including Ethereum [ETH] set for The Merge in September. At the time of writing, ADA was trading at $0.4705 with a market cap of $0.487.

What’s new on the table?

The long-delayed Vasil hardfork is scheduled to launch in mid-September. This has sparked considerable excitement in the Cardano community. While development and testing for the hardfork is ongoing, Input Output Global recently tweeted some updates about the same.

Plutus, the smart contract platform of the Cardano blockchain, will receive a huge update with Vasil. According to IOG, the Plutus V2 scripts introduced with Vasil will provide higher transaction performance and increased cost efficiency. This will greatly increase the value and capacity of the Cardano network.

Charles Hoskinson also got into the story and tweeted about how Cardano was at its best despite its price drop last month.

He said, “A universal truth about crypto is that markets are disconnected from reality.”

Interestingly, Dan Gambardello, a cryptocurrency influencer, recently hinted at a possible bull rally for several coins, including ADA.

According to him, the current market situation was somewhat similar to the bear market of 2018, creating an opportunity for prices to rise soon.

All good ADA?

While community developments and statements from officials and influencers look promising, the metrics paint that picture. ADA’s Market Value Realized Value (MVRV) ratio increased slightly compared to last week. This can be seen as a hint of a possible rise.

In addition, daily active addresses have also increased since early August, indicating the presence of users on the network.

Source: Santiment

However, on-chain trading in earnings declined despite ADA’s recent gains, which appear bearish. Development activity, along with social volume, also followed a similar downward trend, which may limit ADA from rising further in the near term.

Source: Santiment

As of September 8, ADA’s four-hour chart also told a mixed story. Some indicators suggested an increase while others suggested the opposite.

For example, the EMA ribbon showed a narrowing gap between the 20-day and 55-day EMAs, which is a bullish signal. Furthermore, the Moving Average Convergence Divergence (MACD) data also gave a similar picture as the blue line was above the red.

However, the latter was quickly closing in on the former, raising the possibility of a bearish crossover soon. The Relative Strength Index (RSI) was in a neutral position, suggesting that the market could go anywhere.

Source: TradingView

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