Key takeaways
- Cardano’s ADA dips nearly 2% in the last 24 hours and now trades above $0.55.
- Investors are optimistic about ADA’s price action ahead of the anticipated Leios upgrade.
ADA dips 8% this week, but bulls keep hope alive
ADA, the native coin of the Cardano ecosystem, has underperformed this week, mirroring the performance of the broader crypto market. It has lost 8% of its value in the last seven days and now trades at $0.57 per coin.
The poor performance comes as Bitcoin and other major cryptocurrencies recorded losses. However, the losses haven’t deterred bulls who are optimistic ahead of Cardano’s upcoming Leois upgrade.
Cardano-based Leios upgrade aims to dramatically boost network throughput and scalability. According to Input Output Global (IOG), the research arm behind Cardano, Leios is designed to optimize transaction processing and resource utilization, especially during peak block activity.
IOG added that the upgrade introduces new mechanisms like endorsements to maintain security and data availability while boosting overall throughput.
ADA could hit $0.65
The Leois upgrade will be implemented in the fourth quarter of the year and could see ADA rally in the medium term. However, in the short term, ADA could bounce back from its recent bearish slump and surge towards the $0.65 resistance level.
If the bulls regain control of the market, ADA could likely hit the $0.65 resistance level in the short term. An extended bullish run could see ADA hit $0.77 for the first time since May.
However, if the bears remain in control, ADA could test the $0.5096 support level in the coming hours or days. The MACD is still within the negative zone, indicating that sellers are currently in control. The RSI of 37 also shows that ADA is facing heavy selling pressure from investors.
Unless the narrative changes, ADA could dip lower in the coming hours or days before it embarks on a recovery.
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