YEREVAN (CoinChapter.com) — Cardano (ADA) is up 13% in three days. The altcoin was trading at $0.53 on February 9, mirroring movements elsewhere in the cryptocurrency market. Will Cardano’s bullish streak continue into February 2024? Let’s discuss this through technical indicators, on-chain indicators and fundamental news.
Cardano (ADA) technology strength
Cardano has never been a company for explosive rallies. However, the daily chart depicts a 25% uptrend based on a classic bullish reversal setup called a ‘descending wedge’.
ADA broke the upper trendline of the descending wedge pattern on February 8th. Since then, the Cardano token has continued its upward trend, with trading volume increasing (+52%) on February 9, indicating the optimistic sentiment of traders.
The upside target for a breakout is equal to the maximum distance between the upper and lower trend lines of the falling wedge. Therefore, the target price for ADA is $0.67, an increase of almost 25% from current price levels.
On-chain indicators are also leaning towards the bulls.
Investors are still interested
Trading volume has generally declined since late December 2023, but recent increases may indicate a return of interest in the coin.
Moreover, according to a recent report from CoinShares, investors poured $600,000 into Cardano in the week ending February 5th. Those numbers may not seem impressive, but ADA still wins compared to Ethereum, which recorded $6.4 million in outflows.
A fundamental upgrade could help ADA achieve the price targets mentioned above.
Upcoming Cardano upgrades
In detail, Cardano is preparing a ‘Chang Hard Fork’. It is scheduled for the first half of 2024. The Chang hard fork is part of Cardano’s strategic roadmap and is focused on bootstrapping the network’s governance model.
This model departs from traditional governance structures by introducing a consensus mechanism that allows ADA holders to actively participate in the direction of the network. The hard fork is a key step in the transition to the Voltaire era, emphasizing full community governance through various initiatives such as workshops, conferences, and voting.
Meanwhile, it is important to remember that ADA volatility is highly dependent on Bitcoin and its price movements.