What Trajectory to Expect from ADA Price After Vasil Upgrade?

The Cardano ecosystem is ready for the Vasil Upgrade, its most important update after the Alonzo hard fork which enabled smart contracts on the blockchain. We will explore how this update will impact the network and the ADA price in the coming days. Let’s delve into the current market situation first. 

What’s Going On With the ADA Price?

Since May, the price of Cardano (ADA) has been fluctuating between $0.42 and $0.55, with no discernible price movement. Traders predict that the price of ADA will decline following the Vasil hard fork, just like the price of ETH did following the Ethereum Merge. After each hard fork in the past, the price of Cardano has drastically decreased. Data from CoinMarketCap shows that the asset is exchanging hands around the $0.45 price mark with gains of over 1% in the last 24 hours. ADA is holding the 8th market ranking but also has added more than 38% to its daily trading volume in the last day. 

CoinMarketCap

Just like Ethereum, the Cardano ecosystem is ready to get an important upgrade. Let’s consider what  the impact of this will be on the network. 

Is Cardano Network Ready for Upgrade?

Cardano is prepared for the upgrade, according to a tweet from Input Output Hong Kong (IOHK). The Cardano team claims that the update is currently in effect as a result of the simultaneous accomplishment of all three "critical mass indications." 13 cryptocurrency exchanges, or more than 87% of Cardano's (ADA) liquidity, reportedly confirmed their readiness for the hard fork within the past 48 hours, according to the tweet.

Twitter

According to the Cardano Foundation, upgraded Vasil nodes are producing over 98% of mainnet blocks. The major blockchain-based decentralized applications (DApps) have also confirmed their readiness, demonstrating that they meet all three requirements for the update.

How Will Upgrade Change the Network?

The upgrade will be the most significant advancement in the network since the Alonzo hard fork in September of last year, which introduced smart contracts. It aims to enhance smart contracts while reducing costs and increasing network capacity. According to IOHK, one of the biggest enhancements made possible by the fork is quicker block manufacturing.

The network created a significant number of DApps that cover Decentralized Autonomous Organizations (DAOs) and Decentralized Finance in addition to what the upgrade delivers. More users will be lured to the ecosystem as a result. This increasing utility can have a positive effect on ADA's price.

Let’s explore what we should expect from this upgrade in terms of the ADA price. 

What Will be the trajectory of ADA’s price?

Since May, the price of Cardano (ADA) has been fluctuating between $0.42 and $0.55, lacking the spike seen before prior hard forks. In fact, in anticipation of the Vasil hard fork, the price of ADA is still fluctuating sideways. The ADA price hasn't changed much despite the Fed’s raising interest rates and the whales’ purchasing. Traders believe that after the Vasil hard fork, Cardano will most likely dive below and look weak.

TradingView

The price of the asset is finding it difficult to cross the $0.5 barrier. A further decline in price is being resisted by the support level at $0.42. A decreasing bearish trend and a mild bullish push were indicated by the Directional Movement Indicator (DMI). The positive DI line and the signal line are both below 20.

But the signal and plus DI line may be seen steadily rising toward the 20 line, while the negative DI line is observed descending beneath the 20 line. Similarly, the Relative Strength Index (RSI) displayed a trend. The On Balance Volume (OBV) indicator revealed a respectable level of ADA activity. The volume indicator, which displays a small rise but respectable trade volumes, supports this.

Conclusion

The signs and price movement indicate that there has been no volatility with ADA and that everything has been mostly normal. Owners’ concerns that the upgrade would result in "sell the news, buy the rumor" trading activity seem to be unfounded. Indeed, there are signs that ADA holders could soon witness a positive rise.