In a Twitter post, on 21 September, Input Output Hong Kong(IOHK) confirmed that Cardano is ready for the upgrade. According to the Cardano team, the upgrade is currently active due to the simultaneous achievement of all three “critical mass indications.”
According to the tweet, 13 cryptocurrency exchanges, or more than 87% of Cardano’s (ADA) liquidity, have certified their readiness for the hard fork over the past 48 hours.
Over 98% of mainnet blocks are being created by updated Vasil nodes, according to the Cardano Foundation. Also, the top decentralized apps (DApps) on the blockchain have certified their readiness, meeting all three criteria required for the upgrade.
Implications
When it goes online, the upgrade would be the blockchain’s most important development since the Alonzo hard fork in September of last year, which enabled smart contracts.
The goal of this improvement is to improve smart contracts while lowering expenses and boosting network capacity. Faster block production is one of the most significant improvements brought about by the fork, according to IOHK.
In addition to what the upgrade offers, the network developed a large number of Dapps that span Decentralized Autonomous Organisations (DAOs) and Decentralized Finance (DeFi).
All of this impacts the ecosystem since more users will be drawn to it. As a result of its increased utility, this may have a favorable impact on the movement of ADA’s price.
How ADA’s price is looking
ADA closed trade on 21 Sept. (yesterday) with a loss of less than 1%. It opened at $0.442 reaching as high as $0.464 in the same trading period before closing at $0.04389. As of the time of writing, the trade opened at $0.4388 and was already boasting over a 2% gain compared to yesterday.
On the daily chart, the price movement in past weeks has largely been sideways, with the price struggling to break the $0.5 resistance. The support level at $0.42 is proving strong enough to hold a further downward move in price.
Source: TradingView
The Directional Movement Indicator(DMI) showed a weakening bearish trend and a weak bullish push. The signal line is below 20, the same as the plus DI line.
However, the signal and plus DI line can be seen gradually moving upward toward the 20 line and the minus DI line moving down below the 20 line. The Relative Strength Index (RSI) also exhibited a similar pattern.
The On Balance Volume (OBV) indicator showed that there is a decent level of activity with ADA. This is supported by the volume indicator that shows no major spike but shows decent volumes of trade.
According to data from Coinmarketcap, the 24 hours trade volume for ADA has increased by over 30%. Also, the market cap has seen an uptick of over 1%.
The indicators and price movement is showing that all have been relatively normal with ADA, with no volatility. For holders that are a bit worried that the upgrade might bring a “sell the news buy the rumor” trade activities, it has not appeared to be so far.
That being said, there are indications that ADA holders might see a bullish move soon.
