Although the altcoin Cardano (ADA) broke above the short-term diagonal support level, it is still trading above the long-term horizontal level.
Cardano is Approaching a Key Level
Technical analysis of the daily timeframe shows that ADA has been below a descending resistance trend line since December 2023. The decline culminated in reaching a low of $0.45 on January 23, 2024.
Although Cardano managed to consolidate above the critical horizontal support area, the breakout of the downward resistance failed. Now, the price of ADA is approaching the point of intersection of the resistance line and the horizontal support area. The daily relative strength index (RSI) gives mixed readings. The indicator is growing but is still below 50.
ADA Price Forecast: What to Expect in February?
Technical analysis of the short-term 2-hour chart suggests that ADA’s trend remains bearish. The chart shows that the price of the asset recently fell below the ascending support line that has been in place since January 23rd. This is a sign that growth has come to an end.
The two-hour RSI is rising but below 50, indicating trend uncertainty. Current price is $0.484 and If ADA continues to fall, it could fall and reach immediate support at $0.47. However, a return to the rising support line could trigger a 6% rally to the next resistance at $0.53.
The network continues to evolve
Despite modest price dynamics, current developments in the Cardano blockchain demonstrate a steady desire to expand the ecosystem. Thus, the latest report on the development of the network talks about 157 running projects and 1,322 applications that are under active development.
The document notes significant progress in the development of Plutus scripts, a key component that powers smart contracts on the Cardano network.
Every Friday, we publish our weekly #Cardano development update.
So for the lowdown on what IOG’s dev team has been working on last week, head on over and take a look👇https://t.co/J16ckEkVRX
— Input Output (@InputOutputHK) February 2, 2024
At the same time, developers were strengthening the blockchain infrastructure, increasing its performance and incorporating new features.
Features of ADA
Like Ethereum, Cardano is being developed as a platform on which smart contracts and decentralized applications can be run. The project was launched in 2015 and opened to the public in 2017. It is based on the Ouroboros Proof-of-Stake algorithm. The Cardano platform runs a decentralized, open-source cryptocurrency (ADA) that can be used to send and receive digital funds.
About Cardano
Cardano is one of the most popular cryptocurrencies and ranks 8th in terms of market capitalization. The project is a decentralized public blockchain, the main goal of which is to protect user privacy, as well as easy modernization so that the system can quickly develop. Cardano is a multi-layer protocol; the settlement layer is responsible for computational functions, and the control layer runs smart contracts and enforces network requirements.
It strives to improve scalability, security, governance, and compatibility with traditional financial systems and regulations, improving the experience of other projects, such as Bitcoin and Ethereum. An important difference from Ethereum and many other cryptocurrencies is that it is a blockchain project developed with a scientific “philosophy” – the team includes scientists and engineers.
