Will The Cardano Smart Contracts Upgrade Trigger A “Sell The News” Event?
September 09 2021 - 7:00PM
NEWSBTC
Cardano smart contracts upgrade is almost upon us. With just three
days left, there is a lot of speculation as to what the price of
the digital asset will do until then. The weeks leading up to the
launch have seen the asset hit multiple new all-time highs. That is
until 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 market still reeling from the
crash, the digital asset has begun to regain some of the lost
value. But at a much slower pace. 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 posted on
their Twitter that the project was all set for the mainnet upgrade.
Related Reading | The September Curse And How It’s Preparing
Bitcoin For Another Rally But as the date draws closer, the reality
of what the upgrade might do for the price of ADA looms over the
community. Most maintain a positive 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 important upgrades like these, there have been
instances where investors piled up their bags in anticipation of a
big reveal and then promptly dumping their holdings with the
release. This happens not only in the crypto market. Financial
markets are notorious for events like these. Hence the existence of
the phrase “sell the news”. A good indicator of investors’ attitude
towards dumping is market sentiment. Currently, the overall market
sentiment has moved into the negative. 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 indicates that investors are more likely to sell their
holdings than buy. Market sentiment falls into fear | Source: Fear
& Greed Index on Alternative.me Related Reading | Cardano
Confirms Launch Date For Smart Contracts Mainnet Upgrade 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 current sentiment and
market correction only just beginning, a more conservative approach
from investors can be expected 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 writing, ADA price has seen some
recovery that moved it out of the $2.4 territory to its current
trading price of $2.59, with a 24-hour price change 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. ADA trading above $2.5 | Source: ADAUSD on TradingView.com
Featured image from Cardano Feed, charts from Alternative.me and
TradingView.com
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