Michaël van de Poppe - 08 September 2022
Cardano | Vasil Hard Fork
Cardano’s long-awaited Vasil hard fork is around the corner after being postponed earlier. Its release could be a positive for Cardano which has a bad track record when it comes to upgrades but still has a strong community.
Cardano is a decentralized, proof-of-stake blockchain platform that uses ADA as its currency. It uses Haskell, a purely functional and statically typed language with high fault tolerance. It also uses a Haskell-derived language called Plutus to define smart contracts.
Cardano tries to solve 3 problems:
Scalability using Ouroboros
Sustainability, Cardano is a self-sustainable cryptocurrency (improving itself in the future) and also environmentally sustainable (proof of stake)
Interoperability using KMZ sidechains protocol
Vasil Hard Fork
The upgrade will increase Cardano's Scaling capabilities and therefore reduce transaction costs. The update also makes it possible for developers to create more efficient dapps on Cardano thanks to the upgrade of Plutus. The update was postponed multiple times. However, developers at Input Output announced on the 2nd of September that the Vasil hard fork will occur on the 22nd of September.
After the Vasil hard fork, smart contract, dapps, and DeFi activities could increase in the Cardano ecosystem. This because Vasil hard fork upgrades will provide easier solutions for developers to create dapps and smart contracts on Plutus. Considering its strong community, any positive sign for the Cardano ecosystem could be bullish, especially if it results in more adoption of the chain and its dApps.
Vasil Hard Fork has been delayed multiple times. However, the upgrade will likely be successful this time. With Cardano’s strong community support and potential partners. It can finally create a better environment for them to build dApps, possibly resulting in increasing adoption relatively fast. Any sign of this could be very bullish for ADA, of course. That being said, the whole market is in a very bearish state which could severely limit or even altogether cancel bullish price movement in ADA should the wider market tank.
Let’s look at the 8-hour chart of $ADA/$USDT!
After ADA took out the stops at $0.4257, we saw a strong move towards the resistance area of $0.5049-0.5145. We got a harsh rejection from this area towards the support area of $0.449-0.4656. If we see a bounce from this it is likely that we get another test of the previous resistance area of $0.5049- 0.5145. When we lose this support level, I can see the price going towards the equal lows at $0.4019.