Cardano – Weekly Chart
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Investing.com – Vasil’s hardfork slated for June could see a big leap forward. In the past, a major network upgrade has always been accompanied by a rise in the price of ADA.
When in July 2020 staking hit the scene and investors were able to earn returns by holding coins, the surging interest drove the price up 500%.
With the introduction of native tokens and NFTs in March 2021, the price rose by 1,000 percent and the smart contract update in September also resulted in lavish gains.
Fundamental news has always boosted the price in the past, which could be the case again in the coming weeks.
The upcoming update is expected to bring a lot of improvements in the scaling area, which should arouse the interest of app developers in the first place. This inevitably results in ecosystem growth, which comes with growing popularity, as co-founder Charles Hoskinson explained:
“What most people don’t know is that many Cardano dApps are waiting for the Vasil hardfork to launch in June to take advantage of pipelining. So it looks like we haven’t seen anything from TVL yet.”
TVL stands for Total (EPA:) Value Locked and is the technical term for capital invested in dApps through smart contracts.
Important technical thresholds for Cardano
Starting from the current price of $0.7846, it wouldn’t even take a 300 percent rise to test the all-time high just above $3. A jump in prices that has already happened more than once in the past as part of network upgrades.
On the weekly chart, it can be seen that Cardano broke through the descending trendline resistance (green). Meanwhile, the formation of a low at $0.7372 led to a positive divergence in the RSI.
While the RSI formed a higher low, the price of ADA recorded a lower low, indicating a weakening of the bearish momentum.
If the focus on the cryptocurrency increases against the backdrop of the upcoming Vasil hardfork, several resistances will oppose the rally towards the all-time high.
Besides the psychological levels of $1.00 and $2.00, there are the Fibonacci retracements at 1.2946, 1.6394, 1.9181, 2.1967 and $2.5935.
By Marco Oehrl