Cardano Jumps on Scaling Plans, Targets $2
Cardano ranks among the top performing crypto assets in the market today.
Key Takeaways
- Cardano is up nearly 50% over the past week.
- IOHK has revealed new plans to optimize the network.
- Further upward pressure could send ADA to $2.
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Cardano has flipped Solana to become the fifth-largest cryptocurrency by market cap after posting 47% week-over-week gains. New scaling plans appear to be driving ADA’s bullish price action.
Cardano Turns Bullish on Scaling News
Cardano is back in the green.
Input Output Hong Kong, the company developing Cardano, has announced new plans outlining how it will scale the network in 2022. The goal is to increase the network’s capacity and throughput with different parameter adjustments, enhancements, and other innovations.
The engineering and research company wants to prepare the smart contracts blockchain for a substantial spike in usage, amid plans to onboard hundreds of thousands of users.
Some of the main on-chain upgrades expected are an increase in block size, the introduction of pipelining to reduce block propagation times, and input endorsers to expand the number of transactions per second. IOHK also plans to introduce sidechains to enable tokens from one chain to be used in another and more resource-efficient processes to settle transactions off the main chain.
The new scaling initiatives appear to have been welcomed by market participants as Cardano is one of the few large-cap crypto assets to kick off Monday on a positive note. ADA has gained nearly 12% in market value since the weekly open and may have more room to go up.
The 3-day chart shows Cardano trying to overcome critical resistance at $1.55. Breaching such a crucial supply wall could encourage crypto enthusiasts to get back in the market and propel ADA towards the 50-three-day moving average at $1.90 or even the psychological $2 barrier.
Although a local bottom appears to have been formed around the 200-three-day moving average, this remains the most important support level for Cardano. Any signs of weakness around the $1 demand zone can have the strength to invalidate the optimistic outlook. Under such circumstances, ADA would be at risk of crashing to $0.65.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
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