Key Takeaways:
- Cardano (ADA) rally 18% in two days.
- ADA whales continue to accumulate, increasing buying pressure.
- Technical indicators don’t favor the bulls.
- The Netwrok introduced a scaling plan for the year, which could defy the bearish predictions.
YEREVAN (CoinChapter.com) — Cardano (ADA) rally stalled Wednesday as the market grappled with interim selling pressure from bears when the price crossed above $1. In doing so, ADA lost a modest portion of the 18% gains that it had made in the first two days of this week.
Nonetheless, ADA’s percentage gains were above 11% week-to-date as of Mar. 2, 0915 UTC.
ADA whales return
Santiment, a social media sentiment tracker, detected a heightened accumulation among Cardano addresses that carry between 100,000 and 1 million ADA, also known as “whales.” In addition, the platform noted that ADA whales had added almost 16 million tokens to their holdings since Feb. 27, thus putting weight behind the price spike.
However, the critical resistance at $1.10 absorbed some buying pressure.
Cardano risks 50% price decline
As CoinChapter previously reported, ADA has been trading in a setup known as the “Descending Channel” since early Sep. 2021. The latter entails two parallel trendlines with a negative slope that enclose the price action and pressure the value down as the pattern progresses.
As ADA failed to slice through the crucial $1.10 barrier and retested it as resistance instead, the channel predictions were bearish as of Mar. 2.
Thus, Cardano’s in-house token eyed a further decline to the Channel’s support and could hit $0.40 in the upcoming sessions. However, the bearish scenario has an additional checkpoint before it is confirmed — the $0.80-support level could throw ADA a lifeline and increase the chances of building up more buying pressure.
Meanwhile, the developments on the Network supported the bullish claim.
Cardano developments
Despite the grim technicals, the Cardano Network added approximately 5,000 new wallets daily throughout February. The growing number of wallets could increase investors’ interest as Cardano develops.
In detail, Input Output Hong Kong (IOHK), the developing company behind Cardano, announced a series of releases in 2022 as a part of the Network’s scaling plan.
The company specified several improvements, such as the ability to create transactions conforming to the Concise Data Definition Language (CDDL), “rather than requiring third-party tools.” Other aspects included multiple entities signing a joint transaction.
While it is already possible to have a Cardano transaction signed by multiple entities (something similar to a joint bank account) using their private keys, this update makes it possible to sign a transaction incrementally. Now, for example, one party can sign the transaction first, then send it over to someone else, instead of having to sign it together.
commented IOHK.Additionally, the company mentioned that the February improvements are “just the beginning” and that the scaling plan will unfold throughout 2022. Notably, users could expect significant enhancements coming in July and October 2022.
