The update of ADA Cardano smart contracts is approaching. With just three days left, there's a lot of speculation about what the price of the digital asset will do by then. The weeks leading up to the launch saw the asset reach several new all-time highs. That is, until the crash that rocked the market on September 7th. Cardano suffered a sudden 18% drop that saw it lose most of its gains from the previous weeks.
Now, with the market still recovering from the rapid crash of September 7th, digital assets have started to recover some of the lost value. But at a much slower pace. One piece of news that helped to hold the price back was the confirmation of the Alonzo Hard Fork, which was scheduled for September 12th. Developer IOHK posted on his Twitter that the project was ready for the mainnet update.
But as the date approaches, the reality of what the upgrade can do for the price of the ADA hangs over the crypto community. Most maintain a positive outlook for the upcoming update. Others, on the other hand, believe this will trigger a “new sales” event.
Are investors willing to dump their Cardanos on the market?
Historically, with major updates like these, there have been instances where investors have piled up their bags in anticipation of a big reveal, then promptly dumped their assets upon the release. It doesn't just happen in cryptocurrency market🇧🇷 Financial markets are notorious for events like these. Hence the phrase “sell the news”.
A good indicator of investors' attitude towards dumping is market sentiment. Currently, the general market sentiment has turned negative. The Fear & Greed Index (Fear & Greed) shows that the market exited “Extreme Greed” earlier in the week and lost more than 30 points to enter “Fear” territory. This indicates that investors are more likely to sell their holdings than to buy.
All the positive news about Alonzo fueled the rally that led to new all-time highs. But with current sentiment and the market correction just beginning, a more conservative approach from investors can be expected on September 12th. However, an increase in price can be expected when traffic increases on the network, which would require ADA tokens to perform activities such as interacting with decentralized finance (DeFi) protocols and creating NFTs.
At the time of this writing, the ADA price has had some recovery that has moved it from $2,4 territory to its current trading price of $2,59, with a 24-hour price change of 8,52 %. Cardano still maintains its No. 3 position in the top 10 cryptocurrencies by market value, with a current market cap of $82 billion.
