How will Cardano Vasil Hard Fork Impact ADA Price?

Cardano, one of the most hyped projects of the crypto space has had a tough going. Its prices have been on a major slide down the hill and technically, there’s no end in sight. Add to that the news of the delayed Vasil hardfork which was rescinded from 28 June, 2022.

However a recent tweet from Input Output Hong Kong (IOHK), the company that manages and works on the Cardano project has recently shared that 3 July could be the date when the Vasil Mainnet upgrade may take place.

We’re delighted to report that in the last few minutes we have submitted an update proposal to hard fork the #Cardano Testnet, and commence the countdown for the #Vasil mainnet upgrade. 🧵

1/n

— Input Output (@InputOutputHK) June 28, 2022

IOHK has also conveyed that it would require a period of four weeks to complete a seamless transition from the testnet to the mainnet. Despite all that, the Vasil hardfork would bring about a whole bunch of system improvements and upgrades to the Cardano network.

#Vasil improvements include higher throughput through diffusion pipelining to a better developer experience via much improved script performance & efficiency (plus lower costs). It is #Cardano’s biggest and best upgrade to date.

6/n

— Input Output (@InputOutputHK) June 28, 2022

CARDANO (ADA): A TECHNICAL OVERVIEW

Source: Tradingview

From a technical standpoint, Cardano is extremely weak on the charts. It has fallen close to 87% from its all-time highs and there is little to indicate any chances of a strong pullback from current levels. The only saving grace for the token is that it is trading above the trendline support, which earlier was a trendline resistance but was flipped into support towards the end of March 2022.

Since then, ADA prices have been able to hold on above the support line but is still below the 50-day and the 200-day simple moving averages. The 50-DMA is reasonably close and a breakout over this would bring about some short-term positivity on the charts.

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With the RSI currently trading below the 40 mark, it suggests that there is some space for a further fall from current levels, until of course, it manages to reach above 50 which will then serve as some measure of downward support.

Additional Read: Cardano Price Prediction 2022

ANY POSITIVITY ON CARDANO’S METRICS?

Well, the simple answer is no. There’s not that indicates any sign of optimism on the chain either. But that isn’t unexpected either, thanks to the broader market bearish cues. There is a lot of excitement in the Cardano community over the possibility of the Vasil hardfork in two days’ time, but that isn’t getting reflected too well on the chain.

From on-chain transaction volumes to active address count – all of these crucial metrics have been seeing some serious downward trend on the charts.

Transaction Volumes | Source: Messari.io

The transaction volume basically measures the sum in US dollar value of all native units of the token transferred over the chain. In other words, the aggregate size in USD of all transfers that are taking place on the Cardano network. Now, as is evident from the chart, the transaction volume has been reasonably low ever since its all-time-highs, except for a spike in the beginning of April when ADA prices rallied a little bit (as mentioned earlier in the technical bit).

Active Addresses Count | Source: Messari.io

Active Addresses Count is the sum count of all the unique addresses that were active in the Cardano network – either as a recipient or originator of a ledger change. The method of counting ensures that all the parties in a ledger change action are counted while individual address double-counting is avoided.

Now, the findings from this chart also coincide with the metric above – there are a lesser and lesser number of people participating in the chain as the prices of ADA plummeted over the last 8-9 months.

Read more on: Is ADA a good investment in 2022?

CONCLUSION

Drawing final inferences from both the technical and the fundamental aspects of the blockchain – it can be reasonably concluded that despite various utilities the Cardano blockchain may be capable of solving, currently, the general investor isn’t the most confident about buying the dip. So, going forward a further depreciation in prices may be seen until there is an improvement in the broader market sentiment.