Cardano Vasil hard fork hype soars ADA price

Cardano (ADA) was among the top-performing cryptocurrencies on June 6 as traders braced for the forthcoming Vasil hard fork.

Vasil hard fork hype boosts ADA

The so-called hard fork event, “Vasil,” will take place on June 29, 2022. Because of the enthusiasm surrounding this upgrading, traders have begun to speculate more on ADA’s upside prospects. This results in its outperformance of other top-ranking digital assets.

For example, ADA’s price increased by more than 14% to $0.64 on June 6, compared to Ether’s (ETH) 6% growth on the same day.

Cardano’s price history indicates similar exuberant behavior among traders in the days leading up to hard fork events. For example, the September 2021 Alonzo upgrade, which added smart contract functionality to the Cardano network, was followed by a 200%-plus ADA price increase.

ADA price movement

Previous price increases that led to the hard fork events have a place in an expansionary macro-environment. For example, interest rates were near zero, and the Federal Reserve was purchasing $120 billion in government bonds per month.

However, the U.S. central bank has recently turned hawkish in response to consistently increasing inflation. As a result, many analysts claim that there is now less U.S. dollar liquidity available to purchase risky assets such as stocks and cryptocurrencies.

Cardano has suffered due to the Fed’s tightening. This resulted in a doubled-down price since its peak of $3.16 in September 2021. Significant bounces are also part of the larger downward motion.

From a technical standpoint, ADA is currently testing a resistance confluence that includes a falling trendline and its 50-day 50-day EMA to almost $0.66, as well as a horizontal trendline (the neckline) near $0.62, forming a “double bottom” pattern.

A breach above the resistance confluence could trigger the double bottom breakout.