How Cardano’s latest upgrade sparks optimism despite ADA’s dip

  • Cardano updated its UTXO-HD to version 0.10.0, to improve contribution to open-source activity on the chain.
  • ADA’s price dropped to $0.44 but indicators suggested a bounce in the short term.

It rained good news for Cardano [ADA] after the project’s consensus team disclosed that it had completed a crucial upgrade. Made known by Input Output, Cardano’s engineering arm, the team released an updated version of the UTXO-HD.

UTXO stands for Unspent Transactions Output. It refers to the total amount of tokens left in a user’s wallet which could be used as input for a new transaction.

A new sheriff is in town

But when attached to the “HD”, it is different. In this instance, it means that one version which impacts user activity has migrated to a new one.

For Cardano, the UTXO-HD rebased on top of node v 8.11 to version 0.10.0. With this upgrade, developers would be able to access more data to contribute to open-source commitments on the chain.

However, this update did not add any value to ADA’s price. At press time, ADA changed hands at $0.44, representing a 2.85% decrease in the last seven days.

Despite that, some holders of the token are optimistic that the price action will get better. But hope is not a strategy for a price increase. Hence, AMBCrypto looked to the liquidation levels to see if the Cardano native token would recover soon.

Liquidation levels spot price points where liquidation events might occur. It also tells if the price would move in a certain direction. At press time, using Hyblock’s data, a magnetic zone appeared from $0.46 to $0.49.

This indicates that ADA could move in an upward direction. The Cumulative Liquidations Levels Delta (CLLD) also backed the prediction as it was negative.

Cardano liquidation levels flashes a bullish signal

Source: Hyblock

ADA looks set for $0.50

Positive values of the CLLD indicate that there are more long liquidations than shorts. But if the reading is negative, it implies otherwise. This indicator also impacts prices.

The negative reading suggests that late short could punished even as Cardano could retrace. But the decline could be short-lived, and a recovery might be upon the market.

Going by the press time position, ADA could begin a rise toward $0.50 in the short term. In terms of volume, data from Santiment showed that the metric decreased.

The decline in volume could be linked to decreasing interest in ADA. But when combined with the falling price, it indicates that ADA could be on the verge of a bounce.

Cardano's volume decrease but positive sentiment could send price higherCardano's volume decrease but positive sentiment could send price higher

Source: Santiment

Read Cardano’s [ADA] Price Prediction 2024-2030

In the meantime, the promising signs had started to reflect on the sentiment in the market.

At press time, the Weighted Sentiment was 0.60, indicating that positive comments about Cardano have been increasing. If this continues, demand for the token might increase, and a possible jump could be close.

Next: Ethereum’s bullish surge cools off – How much longer for $4k?

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