ADA jumps 7% after Cardano increases smart contracts’ script memory

Read CoinChapter.com on Google News

YEREVAN (CoinChapter.com) – ADA, the native token of smart contract platform Cardano, traded at $0.94 in the Asian-Pacific session on Mar. 22, after rising 7% in the previous 24 hours. However, the token will face a confluence of resistance ahead if the rally continues.

ADA Resistance Confluence

As CoinChapter previously reported, the digital asset has been trading in a setup dubbed the Descending Channel since mid-August 2021. The formation consists of two parallel trendlines enclosing the price action and gradually driving the value down.

Notably, the setup does not predict a particular bias after exhaustion. However, if ADA confirms the Channel’s relevance with retests, the formation could be instrumental in determining short-term bias.

ADA retested the Channel’s mid-range on Feb. 25 and has been consolidating sideways ever since, leaning on the $0.77 support. However, if the current upside move continues, the Cardano token could approach the formation’s resistance trendline.

Also read: Cardano staking reserves surpass $220M for the first time in history.

ADA could reach the support-tuned-resistance line at $1. Additionally, the token’s 50-day exponential moving average (EMA-50) could also cap its upside attempts.

According to Input Output Hong Kong (IOHK), the developing company behind Cardano, the Network increased its Script memory, which could have influenced the ADA price.

Plutus Script memory

The smart contract platform has proposed increasing the limit of memory units per block for the blockchain’s Plutus (Cardano’s smart contract component) scripts from 56 million to 62 million. As IOHK announced on Monday, the change took effect on Mar. 21at UTC 21:44:51, and boosted the Network’s capacity.

This incremental adjustment is the latest in a continuing series of optimizations and increases to network capacity that are being made as Cardano continues to scale in 2022 for future growth

further commented the company.

Also read: Cardano jumps 18% in two days in a comeback rally – and rich ADA investors are behind it.

IOHK also posted a roadmap, mentioning “further growth” in 2022. In detail, Cardano has been working on improving its scalability. Last month, its block size was boosted by 11%. Moreover, IOHK expects to see “high volumes” of network traffic as more dApps launch on the mainnet.

Please leave this field empty

Subscribe Today
for our Weekly Newsletter

Email Address *

Free Weekly Crypto News without the spam.

Check your inbox or spam folder to confirm your subscription.