ADA Price Analysis: What’s Next for ADA? Cardano Implements Another Successful Scaling Update

• At the time of publication, ADA was trading at $0.90, up 2.21% in the last 24 hours and 13.74% weekly
• IOG, Cardano’s parent company announces the implementation of another scaling update.
• An updated proposal will trigger an increase in per-block Plutus script memory units limit from 56 million to over 62 million

Cardano’s (ADA) price slid into a consolidation early in March and continued doing so for nearly two weeks. Cardano is presently attempting a breakout out of its range after rising from lows of $0.78 on Mar. 15. At the time of publication, ADA was trading at $0.90, up 2.21% in the last 24 hours and 13.74% weekly. IOG, Cardano’s parent company announces the implementation of another scaling update. it states in a recent tweet that an update proposal that was submitted before the weekend will trigger an increase in per-block Plutus script memory units limit from 56 million to over 62 million. This change is expected to take effect on Cardano mainnet at epoch boundary 328 or significantly on Mar. 21. This incremental adjustment is the latest in a continuing series of optimizations and increases to network capacity that is being made as Cardano continues to scale in 2022 for future growth, IOG stated.

Key Levels
Resistance Levels: $1.50, $1.35, $1.00
Support Levels: $0.83, $0.75, $0.52

ADA/USD Daily Chart: Ranging

ADA/USD Daily Chart

Buyers seized control of the momentum at $0.830, where support was reinforced. The $1.0 level is being targeted by ADA/USD, as seen in an attempt in the intraday high at $0.930, which also happens to be below the moving average (MA 50) barrier. The ADA/USD pair might begin its trek towards the upper portion of the resistance zone at $1.50 if bulls manage to push the ADA price back over the $1.0 level.

Oscillators send out mixed signals in the form of directional momentum. The Relative Strength Index (RSI) right above the mid-line 50, on the other hand, signals a resurgence of upside tendency. If the price declines from its current level and falls below the support at $0.830, the bears may be tempted to sell further. This might lead to a price decrease of $0.746, then $0.525.

ADA/USD 4-Hour Chart: Ranging

ADA/USD 4-Hour Chart

ADA acceleration continues into the new week, breaking past the price barrier at the MA 200 ($0.880) and horizontal resistance level of $0.921. A close above the horizontal resistance at $0.921 would bolster the developing bullish sentiment even more. From a rising price, the ADA/USD pair has now produced a minor bullish technical breakout from the 4-hour MAs.

Bulls are aiming for $1.0 and $1.011 intermediate resistance of Mar. 1 which if broken would allow for a retest of highs above $1.50. A break below the 4-hour MA 200 at $0.880 would signal a return of the downswing, with the MA 50 at $0.845 being the target. A sustained breach of MA 50 might lead to a deeper correction with retracement levels of $0.830 and $0.746.

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