Cardano may be ready for a bull run but the attention remains
Cardano [ADA] is getting ready to launch its new Vasil hard fork this month. However, the blockchain also recorded a commendable performance last week, gaining more than 5% in the past seven days.
With this, it outperforms several other cryptocurrencies with higher market capitalization, including Ethereum [ETH] set for The Merge in September. At the time of writing, ADA is running trades at $0.4705 with a market cap of $0.487.
What's New on the Table
The Vasil hardfork, which has been delayed for quite a while now, is expected to be released in mid-September. This has sparked considerable excitement in the community. Cardano. While hardfork development and testing is underway, Input Output Global recently tweeted some updates regarding the same.
Plutus, the smart contract platform of the Cardano blockchain, will receive a major update with Vasil. According to IOG, the Plutus V2 scripts introduced with Vasil will provide higher transaction throughput and increased cost efficiency. This will greatly increase the value and capabilities of the Cardano network.
Charles Hoskinson also stepped into the story and tweeted about how Cardano is at its best despite its price drop last month.
He said, “A common truth about cryptocurrencies is that the market is disconnected from reality.”
Interestingly, Dan Gambardello, a crypto influencer, recently hinted at a possible bull run for many coins, including ADA.
According to him, the current market conditions are similar to the bear market of 2018, creating an opportunity for the price to rise soon.
All good ADA?
While developments in the community and statements from officials and influencers looked promising, the indicators paint this picture. ADA's Real Market Value (MVRV) ratio increased slightly from last week. This can be taken as a hint of a possible upside.
Furthermore, daily active addresses have also increased since the beginning of August, indicating a user presence on the network.
However, profits from online transactions have declined despite the recent increase in ADA, which appears to be declining. Growth activity, along with social volume, is also following a similar downward trend, which could limit ADA further upside in the short term.
As of September 8, ADA's 4-hour chart also tells an ambiguous story. Some indicators show gains while others show the opposite.
Example: The EMA Ribbon shows the bearish distance between the 20 and 55 day EMAs, which is a bullish signal. Furthermore, the Moving Average Convergence Divergence (MACD) data also paints a similar picture as the blue line above the red line.
However, the latter quickly approaches the former, which increases the possibility of an early bearish crossover. The Relative Strength Index (RSI) is in a neutral position, suggesting that the market can go anywhere.
Sep 09, 2022