At 9:45 pm yesterday, Cardano’s hardfork began. The hardfork consists of a division of the blockchain into two entities, one of which is the original and the other the new chain. Such news would have pushed its price higher, but in recent weeks its price has been falling. It is assumed that its price may recover in the near future, but there is still a long way to go.
Charles Hoskinson’s enthusiasm for this event was enormous, so much so that he tweeted about it. In fact, the hardfork is one of the most important updates on the Cardano network. The update will certainly produce an improvement, also from a smart contract perspective. To have the desired effects, it will take some time and the recent decline will not be recovered immediately.
Is Cardano’s Hardfork Having The Desired Effects?
By studying the average transfer volumes, there was a reduction in activities on the Cardano network. Evidently this indicator has shrunk due to the recent crypto market correction, with large investors taking their own profits. As evidence of this, even during the uptrend of the weeks leading up to the downturn, average transfer volumes fell.
The causes of this reduction can be mainly two. First of all, there could be the situation of no sellers, which is a clearly bullish sign. Secondly, however, this could indicate a reduction in outflows from the Cardano network. observing the behavior of the price, it is believed that the effects of the announcement will not immediately be reflected on the listing price.
Cardano’s last major correction took place in the week of May 17, with a decline of 43%. First the rally pushed the price from $ 0.08 to $ 2.47 (+ 3.452%). The correction brought the price to $ 0.996 (-59%). The next rally broke through the May high, pushing the price to $ 3.03. The generalized decline in the market did not spare Cardano.
A first sign of a possible correction came with the RSI in the overbought zone. Right now the price is breaking down from the May highs, with the price at $ 2.38. This trend is expected to be short-term, in line with the entire crypto market. The next step will be the test as support of the $ 1.90 level corresponding to the 21-period average.
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