Will Cardano Smart Contracts Launch Become A ‘Sell The News’ Event?
Cardano smart contracts upgrade is only a few days away. There has been speculation of how ADA price will behave until then. The past weeks saw the asset hit multiple new all-time highs, as the anticipation is growing. In the recent September 7 market crash, ADA took an 18% hit wiping out most of its gains from the previous weeks.
As the market still recovering from the crash, Cardano’s native token 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 re-confirmation of the Alonzo Hard Fork that had been scheduled for September 12th.
But as the date draws closer, the reality of what the upgrade might do for the price of ADA still remains a big question mark. Majority of the community has a positive outlook for the coming upgrade. Others believe that this will trigger a “sell the news” event.
A Plan To Sell Cardano Holdings?
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.
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 might happen 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 is trading at $2.56, with a 24-hour price change of 4.81%. Cardano still maintains its number 3 position on the top 10 cryptocurrencies by market cap with a current market cap of $82 billion.
