Investors are betting on Cardano ahead of its highly anticipated Vasil hard fork. The cryptocurrency has shot up to one of the top 10 holdings of whales n the BNB Chain (formerly known as the Binance Smart Chain).
The data shared by whale monitoring service WhaleStats shows that Cardano has become one of the top 10 largest holdings for 2,000 biggest whales on the Binance Chain. The data was shared at a time when new developments have been made towards the Vasil hard fork.
Note: The BNB Chain whales are holding a tokenized version of Cardano on the blockchain, and not native ADA tokens held on the Cardano blockchain.
The Vasil hard fork is a significant upgrade involving four Cardano Improvement Proposals (CIPs). These new checkpoints build on top of CIP-31, which introduces a "new kind" input that allows you to see output without spending it.
As part of the hard fork, there is also CIP-33, which proposes reference scripts "attached to outputs and allowing them to use during validation rather than requiring spending transaction do so. CIP-33 will allow transactions using common scripts to be much smaller.
Lastly, the hard fork includes CIP-40, which will remove any need for wallets to explicitly set collateral.
The developers behind the hard fork have been hesitant to implement it because of recent Terra events. They said they wanted to make sure everything was running perfectly.
The Cardano founder is confident that the hard fork will deliver a "massive performance improvement." Experts predict that the price of Cardano will explode in less than two years, with one expert predicting an increase up to $2.93 by 2025 and another thinking it could hit even higher numbers at $6.53 by 2030. However, they believe they will trade at just $0.63 by the end of the week.
The ADA cryptocurrency is at risk of falling back into a corrective phase after it has lost momentum this past week.
Key Support levels: $0.45, $0.38
Key Resistance levels: $0.55, $0.66
Bulls were in control around mid-July, but when the price hit $0.55, it seemed that all of their strength had evaporated, and the bears regained control. Bears may be in control of the market's price action, and they have a chance to end this upward trend that was established early this month. If the bears successfully take complete control, they would push ADA back to the $0.45 support level.
Bulls had a reasonable attempt to push up ADA's price above the critical resistance at $0.55, but they failed.
With Cardano still within the same price range set in May, it might be time for bears to test that critical support again.
The ADA/USD pair is currently trading at $0.4696 with a 0.09% gain in the last 24hrs.