Key Takeaways
- Cardano rolled out updates to increase network capacity and memory improvements for its smart contracts scripting language.
- Cardano’s token ADA is moving horizontally, holding above $1 support.
NEW DELHI (CoinChapter.com) — Cardano is taking steps to improve its adoption as a decentralized app (dApp) platform.
The network’s Basho upgrade, announced by IOHK (Input Output Hong Kong) CEO Charles Hoskinson in a video blog, is in full swing. As part of the update, IOHK shared an update that the platform would be increasing the block size from 72KB to 80KB, an increase of 8KB.
In detail, a larger block size means more data capacity for a single block on the blockchain. Theoretically, the upgrade would allow more transactions per block, increasing transaction throughput. The Cardano network recently suffered from high congestion from its NFT marketplace.
The Cardano network had a peak load of over 92%. SundaeSwap, Cardano’s first dApp, also ran into issues due to the platform’s network congestion.
Also Read: ADA price action indecisive while the number of Cardano users grows.
In addition, IOHK also announced an upgrade for Plutus, the platform’s smart contracts scripting language. The platform proposed to increase Plutus’ memory units per transaction from 12.5M to 14M. Both the updates would go live on Feb 4 at 21:44 UTC.
We’re committed to delivering the ‘Basho’ scaling phase of the Cardano roadmap through 2022 as the ecosystem grows; improving speed & additional network capacity all the while maintaining security and an ongoing commitment to secure decentralization.
IOHK said on Twitter
Additionally, IOHK’s Twitter thread also asked users to expect a significant load during new dApp launches and large NFT drops, though assuring users “there are no failed transaction fees on Cardano.”
Cardano Price Chart
Cardano’s token ADA has moved almost along a horizontal line since Jan 24. Despite the Jan 21 market crash, ADA prices held above the psychologically key support level at $1. Meanwhile, the Cardano token’s price action continues to move inside a nearly six months long descending channel.
ADA prices have immediate resistance near the $1.09 price level. If the Cardano token breaks out of its lateral price action, ADA could move to $1.17, near its 26-day exponential moving average. A sustained buying pressure could see ADA targeting resistance from its 50-day MA line, near $1.25.
ADA’s relative strength index followed its price movement, moving horizontally in the neutral region, clocking 42.36 on the daily charts.
Also Read: Cardano debuts in metaverse with Pavia, land price skyrockets.
On the other hand, the $1 support level continues to hold strong for the ADA token. If bears take to profit booking after ADA posts a relief rally, prices could break below immediate support to reach $0.95, near the descending channel support line.
If the Cardano token broke below the descending channel support line, ADA prices would reach $0.89, a price level the Cardano token last saw in Feb 2021.
Meanwhile, trend-based momentum oscillator MACD is charting contracting bearish MACD histogram bars. The histogram plots the difference between the MACD line (difference between 12-day and 26-day EMA) and the MACD signal line (9-day EMA of MACD).
Contracting bearish bars indicate the MACD line is moving upwards towards its signal line, which shows strengthening bullish momentum.
At the time of writing, ADA was trading at $1.054, up 2.63% on the day.
