Cardano price is stuck at an important support level as investors embrace a wait-and-see approach ahead of the important decision by the Fed. ADA is trading at $0.7823, which is an important level since it was along the lowest level since March 12th. It crashed by over 75% from its highest point last year, meaning that its market cap has fallen from over $91 billion to $25 billion.
What is the Vasil hard fork?
The Cardano price has been in a tight range as investors wait for the upcoming Vasil hard fork that is scheduled for June this year. This upgrade aims to increase the platform’s performance and possibly attract more developers to the ecosystem. While the block size has already grown by 25% to 80kB, the developers believe that more should be done to increase throughput. That’s what the Vasil upgrade will aim to achieve.
Vasil will solve the challenge of increasing throughput through what is known as diffusion pipelining. This process includes header correctness, which means that the block references its predecessor, and block completeness, which means that the header’s body hash references the received body. In addition, the Vasil hard fork will solve the challenge of denial-of-service (DoS) attacks and introduce asynchronous validation.
The Cardano price has struggled recently as investors anticipate that the hard fork will be delayed. Also, there are concerns about whether this fork will lead to more demand for the Ada token in the near term.
Cardano price prediction
The daily chart shows that the Ada price has recoiled in the past few months as macro issues on inflation and Fed intersect with the slower user adoption of the network. Now, the coin is trading at $0.7820, which is an important level of support where it struggled to move before.
The downward trend has pushed it below the 25-day and 50-day moving averages, while the Stochastic Oscillator has moved below the oversold level. Therefore, with signs of bottoming happening, a rebound to $1 cannot be ruled out in May. However, a drop below $0.7 will invalidate the bullish view.
