Rare project floating in bearish context for weeks, Cardano project ADA signal could, according to some, come in contact with the threshold of the dollar. As their main argument, critics of this theory cite Vasil’s hard fork, to come at the end of the month on Cardano’s blockchain. Let’s see what it is!
Cardano Rising: Is It FOMO?
On June 29, the Cardano blockchain will see the ground Vasil hard fork. This implementation of the blockchain is designed resolve Cardano network inscalability issues. To this end, the protocol will be moved to a new transaction validation method: Unexpired Transaction Output (UXTO).
This upcoming big event on the Cardano blockchain could be one of the explanations for the rise of the ADA signal over the past few days. In fact, FOMO (Fear of Missing Out) could act and push cryptocurrencies to over-buy the token. Here again we discover the idea of the famous adage »Buy the rumor, sell the news ».
“Alonzo” hard fork precedent
The Cardano blockchain already has a strong enthusiasm and buy fever, shortly before the establishment of another hard fork: Alonzo. Because of this hard fork last September investors became en masse. Remember that this Alonzo hard fork is the one that introduced smart contracts on the Cardano blockchain.
When this hard fork was announced, Cardano was priced Space increased by more than 200% in a few weeks. A few days before the fork, the market was even euphoric on the asset.
If the hard fork before, before the update, was very beneficial for the ADA price, it is clear that the market context is very different today. First, last September, the market was emerging in a particularly bullish context.
In fact, most major crypto projects experienced its ATH in October or November 2021. If the market was bullish, it was partly due to an ultra-favorable macroeconomic context: rate interest close to 0 intended to strongly encourage investment. In recent weeks, the context has become much less favorable.
In fact, the fight against inflation by the Fed and the various central banks is pushing them to raise rates. Liquidity in dangerous markets is declining and sellers are gradually accepting buyers. If this event affects the crypto market, so does the stock market.
A recent look back at the ADA price
The following graph, shown from the Coinmarketcap platform, shows the price of the ADA token over the past month:
Over the past 30 days, if the asset has been highly volatile, it has not lost its value. Shortly before mid-May, the signal reached a low of close to $ 0.40 before several weeks of volatility and a range of $ 0.45 to $ 0.60. The end of June was much more positive for the sign which saw an increase of more than 35%. within a few days.
Over the last 24 hours, the ADA signal is down 5.31%. A level that the market is not doing well as it is only falling by 0.63% in total. Compared to the all-time high, the signal is lost. Since the beginning of the year, the decline in appearance is 55%. Fall worried but which is even more favorable than other projects like Solana (SOL), Polkadot (DOT) or even Avalanche (AVAX).
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