Even after the recovery, the cryptocurrency market saw recently, the sentiment of traders and investors is still built around extreme fear as the correction in the market does not seem to be ending. However, some cryptocurrencies like Cardano, are still managing to show a positive dynamic despite the chaos around them.
By mid of this month, Cardano (ADA) will be launching its new Vasil hard fork. Notably, the blockchain also registered a commendable performance during the past week by gaining more than 5% in the last seven days.
With this gain, it clearly outperformed several other cryptos with higher market capitalization, including Ethereum (ETH) which is set for its Merge in mid-September. At the time of writing, ADA was trading at $0.4937.
Is Bull Rally possible for ADA?
The Vasil hard fork, which has been delayed for quite some time now, is finally scheduled to go live in mid-September. This has sparked quite a lot of excitement in the Cardano community. While the development and testing for the hard fork are still on, Input Output Global tweeted a few updates regarding the same recently.
Charles Hoskinson also came forward to comment on the story and tweeted about how Cardano was at its best despite a plunge in its price last month.
Hoskinson said, “A universal truth about crypto is that the markets are disconnected from reality.”
More interestingly, a crypto influencer Dan Gambardella recently indicated a possible bull rally for multiple coins, including ADA.
According to Dan, the current market condition is somewhat similar to the 2018 bear market, building up an opportunity for a price surge soon.
Do the Metrics Justify ADA’s Growth?
Although the developments in the community and statements from officials and influencers seem quite promising, metrics paint this picture. ADA’s Market Value Realized Value (MVRV) ratio surged slightly compared to last week. This may be hinting at a possible uptick.
Also, the daily active addresses have also increased since the beginning of August, indicating the users’ presence on the network.
Despite ADA’s recent gains, which seem bearish, the on-chain transactions in profit declined. Development activity, and social volume, also followed a similar downward trend. This might prevent ADA from moving up further in the short term.
Cardano Seems To Be Breaking Through
As of September 8, ADA’s four-hour chart also told a debatable story. Some indicators had pointed towards a hike while the rest indicated the opposite.
For example, the EMA Ribbon displayed a reduced gap between the 20-day and 55-day EMAs, which is clearly a bullish signal. Moreover, the Moving Average Convergence Divergence (MACD)’s data also hinted the same as the blue line above the red.
However, the latter was fast approaching the prior, due to which the chances of a bearish crossover soared. The Relative Strength Index (RSI) was in a neutral position, hinting that the market could be heading anywhere.
On September 4, ADA finally broke the local resistance level on the ADA/BTC pair. The breakthrough of the ascending triangle was a necessary condition for the continuation of ADA’s growth in the market.
In addition to breaking through the patterned resistance level, Cardano has also managed to move past the 200- and 50-day moving averages that usually pose as a strong barrier for any of the assets in a downtrend.
If ADA manages to keep up the same growth pace for a few days more, the market will most likely see the emergence of a much-needed bullish signal.