Cardano Price up by 12.65% – Time to Buy ADA?
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- Cardano maintains bull run: Time to buy ADA?
- The crypto community anticipates the launch of Cardano’s Vasil hard fork
- Cardano-Ethereum Bridge goes live
The crypto market is off to its best start in weeks, with major coins rising and several top altcoins experiencing double-digit growth. Cardano’s native token has continued on an upward trend for much longer, prompting investors to buy ADA.
With the crypto market’s outlook looking more positive this week, investors need to exercise caution to approaching coins. Below, we’ll look into ADA’s recent price action and examine whether this is a good time to purchase the digital asset.
ADA Spikes as Developers Anticipate Vasil Hard Fork
The biggest cause for optimism in the Cardano community is the upcoming Vasil hard fork. The upgrade has been teased for a while now, with InputOutput Hong Kong (IOHK), the Cardano blockchain’s developers, claiming that it would significantly improve the chain’s scalability.
CIPs coming with June’s HF:
CIPs (Cardano Improvement Proposals) present new features to the #Cardano network that are key to bettering our blockchain
The upcoming HF introduces:
CIP-31: Reference Inputs
CIP-32: Inline Datums
CIP-33: Reference Scripts
CIP-40: Collateral Outputs pic.twitter.com/bx8vOKDF3H— Input Output (@InputOutputHK) May 2, 2022
The Vasil hard fork is expected to bring four Cardano Improvement Proposals (CIPs): CIP-31 (Reference Inputs), CIP-32 (Inline Datums), CIP-33 (Reference Scripts), and CIP-40 (Collateral Outputs). In May, IOHK explained that CIP-31 would reduce transaction costs on the Cardano blockchain, allowing developers to interact with scripts through a reference.
Reference scripts reduce your transaction costs.
Currently, new scripts need to be included in each transaction.
With reference scripts, you can interact with the script through a reference, pushing it onto the chain.
➡️Interaction with a smart contract becomes minimal. pic.twitter.com/g8qVukL75W
— Input Output (@InputOutputHK) May 2, 2022
The Vasil hard fork is expected to be implemented in June, and investors believe it is a strong reason to buy ADA. A poll organised by CoinMarketCap’s price estimates tool indicates that over 24,000 crypto enthusiasts believe ADA will hit $1.06 by the end of the month.
Cardano-Ethereum Bridge Goes Live
Another major bullish sign for Cardano is the launch of its Ethereum bridge. Last week, Cardano launched Milkomeda – a Cardano-Ethereum bridge that allows investors to move USDC from the Ethereum blockchain easily.
The bridge is yet another proof that the blockchain is getting more use cases and competing with some of the other major chains in the market. As the market works on flipping bullish, features like these will definitely encourage investors to buy ADA.
ADA Technical Analysis
ADA currently trades at $0.6383. This price peg reveals a jump of 12.65% in the past 24 hours, meaning that ADA has surpassed the broader market’s 4.40% rise in the same period.
With its strong performance over the past week, ADA surpasses all of its moving average (MA) indicators. These indicators range from the 10-day MA of $0.6278 to the 200-day MA of $0.5714. This bull run offers investors looking to buy cryptocurrency a huge reason to buy ADA, especially as investors anticipate more gains for the token.
With a positive moving average convergence divergence (MACD), ADA is exhibiting a buy signal. As expected, this is another incentive to buy Cardano.
The digital asset’s relative strength index (RSI) of 77.83 demonstrates that it is overbought, but this is expected. Given how well it has performed over the past week, many investors seeking to invest in cryptocurrency have rushed to buy ADA.
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