Cardano’s Alonzo hard fork is most likely a “sell the truth” event if market sentiment is “scared”
Cardano Smart Contract Upgrade is close by. There are only two days left and by then there has been a lot of speculation about ADA’s price movement. In the weeks leading up to its launch, the altcoin continued to make new highs until just before the crash that shook the market on September 7th.
Now that the market is still suffering from the downturn, digital assets have started regaining some of their lost value, but at a much slower rate. One message backing up the benefit is IOHK’s confirmation of the Alonzo hard fork scheduled for September 12th. IOHK developers posted on their Twitter that the project is ready for a mainnet upgrade, like Bitcoin magazine reported on 8/9
But as the deadline approaches, the community is still showing what the upgrade can do for the price of ADA. Most maintain a positive outlook for the upcoming upgrade. On the other hand, others believe that this will trigger a “Sell the News” event.
Are investors planning to dump ADA?
Historically, with major upgrades like this one, there have been instances where investors stacked their bags for FOMO and then ditched them immediately after they were released. Not only does this happen in the cryptocurrency market, but the mainstream market is also very well known for similar events and gave rise to the existence of the term “Sell the News”.
A good indicator to determine an investor’s dump is market sentiment. At the moment the general market sentiment has turned negative. The Fear & Greed Index shows that the market got out of “extreme greed” at the beginning of the week and lost more than 30 points in the direction of “fear”. This shows that investors are more likely to sell than buy.
All the hype leading up to the upgrade fueled the rally to bring ADA to the new ATH. But with current sentiment and market correction just beginning, investors are likely to be more cautious on September 12th. Even so, prices could go up as network traffic increases as ADA has to perform activities like interacting with DeFi protocols and NFT minting.
At the time of going to press, ADA is down more than 5% and is trading at $ 2.46. Cardano holds third place in the top 10 cryptocurrencies by market capitalization with a capitalization of $ 79.1 billion.
According to Newsbtc