YEREVAN (CoinChapter.com) — Cardano (ADA) is up 13% in three days. The altcoin traded at $0.53 on Feb. 9, mirroring moves elsewhere in the crypto market. Will Cardano’s bullish streak continue in February 2024? Let’s discuss this with the help of technical indicators, on-chain metrics, and fundamental news.
Cardano (ADA) Technicals Bullish
Cardano was never one for explosive rallies. However, the daily chart paints a possible 25% uptrend based on the formation of a classic bullish reversal setup called the ‘falling wedge.’
ADA broke above the upper trendline of the falling wedge pattern on Feb. 8. The Cardano token then continued its uptrend, increasing volume on Feb. 9 (+52%), indicating traders’ bullish sentiment.
The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines. As such, ADA has a price target of $0.67, a jump of nearly 25% from the current price level.
On-chain metrics also lean toward the bulls.
Investors Still Interested
While the trading volumes have generally declined since late December 2023, the recent uptick could indicate a returning interest in the coin.
Moreover, according to the latest report by CoinShares, in the week ending Feb. 5, investors poured $0.6 million into Cardano. While the number might not seem impressive, ADA still wins compared to Ethereum, which saw $6.4 million in outflows.
A fundamental upgrade could help ADA get to the price target mentioned above.
Incoming Cardano Upgrade
In detail, Cardano is gearing up for its “Chang Hard Fork.” Scheduled for the first half of 2024. The Chang hard fork is part of Cardano’s strategic roadmap, focusing on bootstrapping the network’s governance model.
This model deviates from traditional governance structures by introducing a consensus mechanism allowing ADA holders to participate in the network’s direction actively. The hard fork is a key step in transitioning to the Voltaire era, emphasizing full community governance through various initiatives, including workshops, conferences, and voting.
Meanwhile, it is crucial to remember that ADA volatility largely depends on Bitcoin and its price fluctuations.
