Cardano (ADA) price prediction for November
- IOHK plans to increase the parameter k and thus improve the staking rewards for ADA holders
- The ADA price surged over 8% last week to completely erase losses from two weeks ago
- A large bear pennant chart formation, which is now in the making, will be activated with a break below $0.0850
Cardano (ADA) price is trading moderately in the red this week as the price action consolidates following gains of almost 8.5% made in the last week.
Fundamental analysis: Cardano decentralization ongoing
Tim Harrison, the Marketing and Communications Director at IOHK has published a roadmap that includes critical steps on the road to Cardano‘s decentralization. The ecosystem is moving towards two main milestones including the introduction of decentralized finance and the shift to a fully decentralized network.
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The launch of Catalyst and the continuous reduction of the d parameters represent the two factors that are driving the platform towards Cardano’s last phase, Voltaire. On the other hand, Harrison discussed one more factor that is expected to benefit long-term ADA owners.
IOHK plans to increase the parameter k and thus improve the staking rewards. Upon the launch of Shelley, the k parameter amounted to 150, thereby limiting the pool size at about 210 MM Ada. The IOHK team has been closely monitoring the activity on the network over recent months and came to a decision to increase the parameter k.
But Harrison emphasized that the adjustment of parameter k requires active engagement from users. As such, he said that the users who are staking must actively participate and pick new pools to stake their ADA holdings.
“We plan to implement the k change in a staged manner. First, we shall move to k=500 at Epoch 234 (21:44 UTC Sunday 6th December 2020). The move to k=500 will give small- to mid-range pools that are currently struggling, an improved opportunity to attract delegation. It will also have the effect of limiting pool size to 64MM ADA, which means over 100 of the largest pools will become saturated. You can redelegate at any point between now and the change,” he said.
Technical analysis: A big bear pennant in the making
A large number of altcoins made progress last week after Bitcoin managed to break above the $12,000 mark. The ADA price surged over 8% to completely erase losses from two weeks ago.
However, a concerning element for the ADA buyers is that the price action is now forming a large bear pennant, which is a bearish development aimed at extending the downtrend lower. This pattern will be activated with a break below $0.0850. In this case, the target becomes the playground centered around the $0.030 mark.
IOHK plans to increase the parameter k and therefore boost the staking rewards for ADA holders, as well as reinforce decentralization. On the market side, ADA is in danger of collapsing in the context of the developing bear pennant.
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