This is not the first time that Cardano’s price has soared amid hard forks. ADA may be preparing for a 30% move with the Vasil Hard Fork just around the horizon.
With a market capitalization of $22.05 billion, Cardano (ADA) is now ranked sixth on Coin MarketCap’s list of the world’s most valuable digital currency projects. For comparison, Binance Coin (BNB) is valued at $47.18 billion, while Ripple (XRP) is valued at $19.38 billion in the cryptocurrency marketplace.
ADA’s 24-hour performance shows an increase of 1.85 percent. $0.6511 has been added to its price. It has also gained 13.37 percent in the last seven days. On CoinMarketCap’s top 10, it is the only coin to have seen more than ten percent gains in the previous week.
Cardano’s weekly price performance is mostly due to the build-up to the Vasil Hard Fork, the next major hard fork event. Hard fork events have historically resulted in a spike in the price of ADA, and it appears that this time will be no exception.
Weekly data shows that the price of ADA rose last week and appears to be on track to rise this week as well. After breaking above the 9 MA line, ADA’s next goal is the 20 MA line, which stands at $0.8532 presently. This is a gain of just over 30%.
Bullishness is shown by the RSI’s current position relative to the RSI SMA. On the weekly chart, the RSI line has just passed above the RSI SMA line and continues to slope upwards. That’s an indication that the weekly chart for ADA is primed for an uptick in price.
Vasil hard fork FOMO
The so-called hard fork event, dubbed “Vasil,” is expected to occur on June 29, 2022. There has been an increase in speculation about ADA’s long-term potential as a result of this upgrade, which has resulted in ADA outperforming other top-ranked digital assets.
On June 6, for example, ADA’s price surged by more than 14% to $0.64, whereas Ether (ETH) gained only 6% on the same day.
In the days leading up to hard fork events, traders’ conduct in Cardano’s price history displays comparable exuberant behavior. As an example, the “Alonzo” upgrade in September 2021, which added smart contract functionality to the Cardano network, sparked a 200 percent-plus ADA price surge.
More details about ADA bull traps
Hard fork incidents were preceded by price rallies that happened in an expanding macro-environment. Federal Reserve officials bought $120 billion in government bonds each month at interest rates close to zero.
The US central bank, on the other hand, has become more hawkish after seeing a long-term rise in inflation. As a result, several analysts claim that purchasing risky assets like stocks and cryptocurrencies is now more difficult using U.S. dollar liquidity.
The Fed’s tightening has wreaked havoc on Cardano, with the ADA token now selling for over 80% less than its September 2021 peak of $3.16. Additionally, the broader move below includes considerable rebounds.