Cardano smart contracts upgrade is almost upon us. With simply 3 days left, there is a great deal of speculation regarding what the rate of the digital possession will do till then. The weeks leading up to the launch have seen the asset hit multiple new all-time highs. That is till the crash that rocked the market on September 7th. Cardano suffered an 18% flash crash that saw it lose most of its gains for the previous weeks.
Now, with the marketplace still reeling from the crash, the digital possession has actually started to gain back a few of the declined. One news that has helped to hold the price up has been the confirmation of the Alonzo Hard Fork that had been scheduled for September 12th. Developer IOHK published on their Twitter that the job was all set for the mainnet upgrade.
But as the date draws closer, the reality of what the upgrade might do for the price of ADA looms over the community. Most keep a favorable outlook for the coming upgrade. Others, on the other hand, believe that this will trigger a “sell the news” event.
Are Investors Planning To Dump Their Cardano Bags?
Historically, with essential upgrades like these, there have actually been circumstances where financiers accumulated their bags in anticipation of a huge expose and after that immediately disposing their holdings with the release. This happens not only in the crypto market. Financial markets are well-known for occasions like these. Hence the presence of the expression “sell the news”.
A good indicator of investors’ attitude towards dumping is market sentiment. Currently, the general market belief has actually moved into the unfavorable. The Fear & Greed Index shows that the market came out of “Extreme Greed” at the start of the week and lost over 30 points to move into the “Fear” territory. This suggests that financiers are most likely to offer their holdings than purchase.
All of the hype leading up to the launch of the upgrade had fueled the rally that led to the new all-time highs. But with existing belief and market correction only simply starting, a more conservative method from financiers can be anticipated on September 12th. Although, an uptick in the price can be expected once traffic picks up on the network, which would require ADA tokens to carry out activities like interacting with decentralized finance (DeFi) protocols and minting NFTs.
As of the time of composing, ADA rate has actually seen some healing that moved it out of the $2.4 area to its existing trading rate of $2.59, with a 24-hour rate modification of 8.52%.Cardano still maintains its number 3 position on the top 10 cryptocurrencies by market cap with a current market cap of $82 billion.
