cardano [ADA] is all set to launch its new Vasil hard fork this month. However, the blockchain also registered a commendable performance last week, gaining more than 5% in the past seven days.
With this, it outperformed several other cryptos with higher market caps, including Ethereum [ETH] that is set for The Merge in September. At the time of writing, ADA was trading at $0.4705 with a market cap of $0.487.
What’s new on the table
The Vasil hard fork, which has been delayed for some time, will go live in mid-September. This has sparked great excitement in the Cardano community. While development and testing of the hard fork is underway, Input Output Global has recently tweeted a few updates about it.
Plutus, the smart contract platform of the Cardano blockchain, is getting a massive update along with Vasil. According to IOG, the Plutus V2 scripts introduced with Vasil will provide higher transaction throughput and greater cost efficiency. This will significantly increase the value and capacity of the Cardano network.
ICYMI: Plutus V2 Scripts Introduced With #Vasil provide higher transaction throughput and higher cost efficiency. Here’s more information about reference entry and reference scripts that enable: #Plutus V2 improvements. #Cardanohttps://t.co/IYNMMevx49
— Input Output (@InputOutputHK) September 7, 2022
Charles Hoskinson also got into the story, tweeting about how Cardano was at its best despite a price drop last month.
He said, “A universal truth about crypto is that the markets are disconnected from reality.”
A universal truth about crypto is that the markets are disconnected from reality. Cardano has never been stronger and frankly many other projects are also solid across the industry, but you don’t see that reflected – just a sea of red. Macro factors always win. (1/2)
— Charles Hoskinson (@IOHK_Charles) September 6, 2022
Interestingly, Dan Gambardello, a crypto influencer, recently hinted at a possible bull rally for multiple coins, including ADA.
According to him, the current market situation was somewhat similar to the bear market of 2018, which quickly created a chance for a price increase.
This will trigger some people, but…
I am so optimistic!
This is the bear market vibes of 2018 again.
The doors of the bull market will be here before we know it.
— Dan Gambardello (@cryptorecruitr) September 8, 2022
Everything okay AD?
While community developments and statements from officials and influencers seem promising, statistics paint the picture. ADA’s Market Value Realized Value (MVRV) ratio rose slightly from last week. This can be seen as a hint to a possible rise.
In addition, since the beginning of August, the daily active addresses have also increased, indicating the presence of users on the network.
However, on-chain trading profits fell despite ADA’s recent gains, which appear bearish. Development activity, along with social volume, also followed a similar downward trend, which could hinder ADA from rising further in the near term.
As of September 8, ADA’s four-hour chart also told an ambiguous story. Some indicators suggested an increase, while the rest indicated the opposite.
For example, the EMA ribbon showed a narrowing gap between the 20-day and 55-day EMAs, which is a bullish signal. In addition, the moving average convergence divergence (MACD) data also presented a similar picture as the blue line above the red line.
However, the latter was quickly approaching the prior, quickly increasing the likelihood of a bearish crossover. The Relative Strength Index (RSI) was in a neutral position, suggesting the market could go either way.