The recent Cardano (ADA) upgrade to increase cross-chain interoperability has propelled the price of ADA above $0.420, breaking the range formed after January 8, 2023.
ADA’s price action has been slow-paced, full of sideways movement. However, with the upgrade on Cardano’s network, investors may see a turn and expect more bullish movements in ADA’s price action.
The company behind the development of Cardano, Input Output Global (IOG), posted on Twitter on February 14 that the SECP upgrade went live on that day.
With bullish sentiment in the market and Bitcoin leading the way to new highs, can Cardano continue its uptrend and break new levels?
Where Does Cardano Go From Here?
The SECP upgrade provided the blockchain with new “cryptographic primitives” to enable secure cross-chain decentralized applications (DApp) development on Cardano. This upgrade can lead to a spike in interest from investors in ADA due to its sustainability and scalability, similar to Ethereum’s.
The Cardano network upgrade also comes with an improvement to its smart contracts platform that will enhance DApps on the Cardano blockchain. Output Input Global stated that the upgrade would allow developers to easily create cross-chain DApss that are secure, reliable, and cost-effective.
This upgrade may improve Cardano’s native token ADA price performance. As seen after the upgrade’s deployment, ADA experienced intense buying pressure, which allow the token to outperform Bitcoin (BTC) and Ethereum (ETH).
Can ADA’s Price Action Hold Up Over Time?
According to Santiment data, the amount of ongoing whale transactions on ADA has seen a massive spike since the beginning of February. There is an average of nearly 1,700 transactions per day, valued at $100,000, a giant uptick from the 300 transactions per day that the token was experiencing through January.
Another good sign for Cardano, whales and sharks are buying more of the token. Since the debacle of crypto exchange FTX on November 9th, whale and shark addresses holding $10,000 to $10 million ADA accumulated $659 million ADA tokens, which equates to $235 million, according to data compiled by Santiment.
ADA is trading at $0.409, with a gain of 5.1% in the last 24 hours. In the previous seven days, ADA has gained 3.7% in anticipation of the Valentine upgrade.
ADA has overcome the resistance wall at the $0.40 level after the uptick in buying pressure and is targeting the next obstacle at $0.52. If ADA continues its pattern, its price can climb to $0.60.
After the price of ADA dropped by -82% in 2022, much of the excitement for the token faded, but with a 45% gain registered in 2023, and the recent upgrade by Cardano developers on its network, the enthusiasm for the token seems to be coming back to life, aiming for new annual highs.