YEREVAN (CoinChapter.com) – ADA coin price stood at $0.38 on Feb 15, the day of Cardano’s Valentine Upgrade. However, the uptick could be short-lived, as the ADA charts hint at a possible 8% decline after the bulls pumped 10% on Feb 14.
ADA risks paring its gains
As mentioned, the coin stood at $0.38 on Feb 15, after breaking out of a ‘descending channel’ formation on Jan 25. The channel consisted of two parallel down-sloping trendlines that prevented sharp moves since May 2022.
Notably, the channel is only instrumental in making short-term predictions and does not entail a bias after the price action leaves the formation. But the declining trading volumes on the daily chart testify to the possible drop ahead, with a potential short-term target at a previous support of $0.35.
Meanwhile, ADA retested the channel’s upper trendline as support on Feb 12-13. Thus, even if the Cardano token corrects downward in the coming sessions, it is unlikely to fall below $0.34.
Also read: Kava token becomes disinflationary like Ethereum after the latest upgrade.
Conversely, if ADA bulls double down, ADA could pump to $0.41, a crucial resistance that capped the token’s bullish attempts since October 2022. Notably, the Valentine upgrade could back the bullish scenario.
Cardano Valentine upgrade
Input Output Hong Kong (IOHK), the developing company behind Cardano, posted details on the Valentine upgrade on Feb 15.
The team also noted that the upgrade “will make it easier for developers to build cross-chain applications.”
Input Output Global (IOG) is adding new built-in functions to Plutus to support ECDSA and Schnorr signatures. This will allow developers to use a wider range of multi-signature or threshold signature designs natively in Cardano, thus providing the highest level of security.
explained the team in an earlier blog post.
The IOHK team specified that the preparations for the Valentine Upgrade had been underway since November 2022 across the Cardano ecosystem.
“The core engineering teams at IOG and the Cardano Foundation, SPOs, DApp developers, and exchanges have performed intensive integration testing in the preview test environment with positive results,” commented Tim Harrison, the strategic communications specialist at IOHK. Will the upgrade affect the ADA coin price? It is too soon to say.
Also read: 3 reasons why Blur’s long-awaited token is a good buy.
Meanwhile, Cardano’s DeFi services saw a 20% month-to-date uptick, bringing the blockchain’s total value locked (TVL) to $110 million. Additionally, the three largest dApps on the mainnet, MinSwap, Indigo, and WindRiders, registered 25%, 40%, and 50% advances in the previous 30 days.
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