Cardano is preparing itself for the second biggest update in its history after the Alonzo hard fork. Vasil matters a lot to the entire Cardano ecosystem because it will add true meaning to investors’ faith in HODling.
Cardano to make a comeback?
The blockchain has always been a DeFi-centric chain, which is why right up to the moment it was set to receive the smart contract update, investors remained highly bullish on the coin and pumped it up all the way to $2.96.
But the disappointing beginning began a chain reaction that resulted in a price drop so severe it only stopped eight months later on 30 May.
The announcement of Cardano’s Vasil hard fork’s activation, as well as the broader market recovery, arrived together, and Cardano pretty much blew up.
Within 24 hours, ADA noted a 37.61% rally and shot the price up to $0.660.
This inched the altcoin closer to a very critical support level of $0.784 and testing it will basically trampoline Cardano towards $1. At the same time, ADA will find support from the 50 and 100 moving averages, which in the past have been sturdy support for ADA’s rise.
However, beyond just recovery, this rally marks a turning point for the investors who have been frustrated with the coin for a while now.
The lack of recovery pushed them to the point where long-term hodlers ended up moving around a major chunk of their supply, consuming 1.25 trillion days in the process. This is the highest movement noted by LTHs since February 2020.
Secondly, it has already drawn the attention of investors as the total value locked in the blockchain increased to $156 million in lieu of ADA breaching into the bullish zone (ref. Cardano Price Action image).
Going forward, Cardano is going to continue to draw attention as the team will migrate Vasil onto the Cardano testnet, followed by the integration of exchanges and the final execution of the hard fork.
This will also result in much higher volatility for the coin, which has already increased by 554% this week. Thus, investors might want to watch out for price swings.