Cardano Price Reverses; When Will the Bull Run Begin?
Though the Vasil hard fork was postponed from June 2022, it will soon be released on September 22 this year. Usually, a crypto event leads to a price surge in native coins, and in the case of the Vasil upgrade, we can expect a similar price surge in ADA.
After the update, Cardano will be a better network with faster speed and more scalability. It also changes the transaction fees and mining rewards. In the next few updates after Vasil, Cardano developers will add new features to improve the functionality of this ecosystem.
Vasil will facilitate Extended Unspent Transaction Output Support (UTXO), additional CIP mechanisms, and Hydra integration for network improvement. Users will find significant improvement in the overall network stability and connectivity.
As a result, it will attract more users to the community, which will surge the price of ADA. If you are interested in long-term investment, read our ADA coin price prediction; it will help to make the right decision.
At the time of writing this post, ADA was trading around $0.43, which is in the lower range of the Bollinger Bands, around the support of $0.4. In the short term, Cardano has been consolidating within a range of $0.60 and $0.40.
Most technical indicators are not reflecting bullishness (MACD is neutral, RSI is 40), and the lack of volatility in BB suggests a continuation of sideways movement. We think it is not a good time to invest for the short term.
On the weekly chart, you can find the resistance around $0.60, but Cardano has formed lower lows that suggest a continuation of the downtrend. Though in the short term, ADA will consolidate within a range, after the Vasil upgrade, it may come down to the level of $0.38.
In the long-term, RSI is below 40, and candlesticks are forming in the lower range of the BB, which suggests a continuation of the downtrend. Though fundamentally, ADA is strong, you should not invest in Cardano for the long term because if the price falls after the hard fork, you will get a better price to buy for the long term.