Cardano’s [ADA] trading takeaway ahead of Vasil hard fork
With some coins and tokens swimming in the red while others are still green, it can be hard to find your bearings and know when the tide might turn next. To that end, here are what the signs had to say about Cardano [ADA].
And the cards say…
At press time, ADA was trading at $0.5219 after slipping by 3.60% in the past day and falling by 8.82% in the past week. For more context, CoinShares’ latest Digital Asset Fund Flows weekly report noted that during a week marked by outflows, Cardano was one of those assets defying the trend.
The report stated,
“Minor inflows were seen across a broad selection of altcoins, most notable were Cardano and Polkadot with inflows totalling US$1m each.”
However, there’s more to an asset’s performance than just its price and flows. Data from Santiment showed that Cardano’s development activity has been down since the beginning of May. Though there was some recovery from the middle of the month, the metric is still a long way down from the highs seen in late 2021.
On the other hand, Cardano’s price indicators painted a more encouraging picture. The Bollinger Bands showed narrowing bands, signaling that volatility could be reducing. Furthermore, the Relative Volatility Index [RVI] recorded a value above 50, hinting that future volatility could take ADA’s price upwards.
In short, this could bode well for bulls, even if ADA’s price was falling at press time. That being said, remember that the overall sentiment is bearish, as CoinShares’ report noted,
“Digital asset investment products saw outflows totalling US$141m last week. The ongoing volatility has led to fickle investors with some seeing this as an opportunity while the aggregate sentiment is predominantly bearish.”
Finally, June could bring a very different assessment of ADA’s movements. With the Cardano community excitedly awaiting the Vasil hard fork that is currently scheduled for June 2022, some key metrics such as price, weighted sentiment, and development activity could see drastic changes – either upwards or downwards.
If the shipping of Alonzo in 2021 is any indication, media coverage of Cardano upgrades also has the potential to affect how investors feel about ADA.