The Cardano network has established itself at the top of the league with continued developments over the past week. However, despite gaining a lot of ground with its Valentine’s Day upgrade, ADA price is now struggling to maintain its support level. Additionally, Cardano’s latest move lower has investors worried as a bearish trap has formed, leaving ADA price vulnerable to further lows.
Cardano takes an unexpected turn amid major upgrades!
Input Output, the development team behind Cardano, recently released their weekly ecosystem development report. This update follows the Valentine’s Day release and precedes an important milestone in Cardano’s roadmap: the journey to the Voltaire era.
The roadmap indicates that the Voltaire era is the fifth and final phase of Cardano’s development. This transition is of particular significance, as Cardano founder Charles Hoskinson has previously stated that it will demonstrate the process of implementing decentralized governance in the crypto industry.
According to reports, the development team has made continuous efforts to address technical backlogs, improve testing infrastructure, and improve documentation related to official specification CIP-1694, which outlines a proposed transition to the Voltaire era. .
Although the Cardano network is striving to improve the user experience, the ADA token has made a significant price drop over the past few days and appears to be forming a bearish trap with a strong divergence pattern.
What’s next for the ADA award?
Over the past couple of days, the bulls managed to hold Cardano’s ADA token above the critical support level of $0.35. However, they were unable to sustain the bounce above the EMA-20 trendline at $0.38, indicating that the bears are selling on small rallies.
At the time of writing, ADA price is trading at $0.36, down 4.41% in the last 24 hours. Looking at the daily price chart, the bulls are now defending the $0.35 weekly support level as a breakout could send the token down to $0.28.
However, a prominent crypto analyst, MMBtrader, predicts that ADA price is now bracing for a reversal as it has reached the buyers zone to initiate long positions. As seen in January, ADA may continue its downtrend to $0.32 and make a bullish comeback that will push the price of the token to the critical resistance of $0.42. A trade above EMA-200 will take the token to the $0.5 level in early March.