is ADA a buy as Vasil upgrade starts?
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Cardano’s price moved sideways on Friday as investors focused on significant developments in its ecosystem. Ada traded at $0.4572 on Friday, about 7.35% above this week’s low. The focus now shifts to the upcoming Vasil update.
Vasili’s update begins
Cardano is an Ethereum killer that aims to be a central platform for users to build scalable decentralized applications. Its coin, Ada, is one of the largest cryptocurrencies in the world with a market capitalization of over $15 billion.
Cardano introduced smart contract technology in 2021. It allowed developers to build and launch applications in its ecosystem. According to Input Output, Cardano has attracted thousands of applications to its ecosystem.
However, the reality is that Cardano has not lived up to its hype or potential. For example, data compiled by DeFi Llama shows that the total value locked (TVL) of its DeFi platform is only $79 million.
Likewise, a closer look at other platforms like CryptoSlam and DappRadar shows that its ecosystem is much smaller.
Cardano’s developers hope Vasili’s update will improve its ecosystem by increasing speeds and efficiency. It improves Marlowe Constant’s validator and enables Daedalus support for Ledger JS Library v.5.1.0. This update started with Frida and all functions will be available on September 27 this year.
Still, analysts believe that Vasili’s upgrade will not have a significant impact on ADA’s price. Basically, it doesn’t attract more developers. And as we saw with the Ethereum Merge, the effects of the update have already been priced in.
Cardano price prediction
The 4-hour chart shows that Cardano’s price has been under intense pressure in recent weeks. During this time, the coin managed to move below the underside of the rising wedge pattern shown in blue. It also formed a head and shoulders pattern along with the 25-day and 50-day moving averages.
The Relative Strength Index (RSI) has risen slightly above the neutral point at 50. Because of this, it is likely that the downtrend of the coin will continue as sellers target the next key support level at $0.40. A move above resistance at $0.47 invalidates the bearish outlook.
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