Cardano (ADA), the world’s 11th largest digital coin by market capitalization, has been making great strides recently, both price-wise and fundamentally. The upcoming hard fork and some interesting partnerships may further boost the ADA price.
Fundamental analysis: Hard fork approaching
The Cardano hard fork is expected to take place mid-February, according to Charles Hoskinson, co-founder and CEO of IOHK, a company that is behind the coin.
“Looks like February — at pretty high certainty — we’re going to have the OBFT hard fork occur. We’re still talking to our exchange partners about that and we just want to make sure all the infrastructure is lined up for it, but infrastructure looks pretty good, so mid-February we anticipate an OBFT hard fork,” said Hoskinson during a livestream.
The OBFT abbreviation stands for Ouroboros Bizantine Fault-Tolerant Consensus Protocol. It is expected that the first Proof-of-Stake (PoS) consensus will provide at least the same level of security associated with the proof-of-work (PoW).
The platform launched a new Cardano test network that attracted very high holder participation. Moreover, it was reported that Cardano’s commercial arm Emurgo, entered a partnership with the Uzbekistan government, with the aim of setting up a blockchain task force to develop regulations for security token offerings (STOs) and exchanges (STXs).
“It is a great honor to be able to work closely with the country’s government officials to help drive the implementation of blockchain technology. We are glad to provide our advisory services to the Uzbekistan government to build essential blockchain infrastructure & support local universities to train future blockchain experts,” said Ken Kodama, EMURGO CEO.
More importantly, Cardano is also working towards the integration of its blockchain education platform into Uzbekistan’s public universities.
Technical analysis: Breakout imminent
It is obvious that Cardano has been making great strides recently with different partnerships and plans, all towards the higher adoption of its coin. Similarly, the ADA has made a push higher following the creation of a 1-year low in December. The coin has risen around 50% since December 18, when it printed $0.0306.
Currently, the ADA is testing the key short-term resistance (the red line) around the $0.045 mark. A break of this resistance would open the door for higher levels, such as $0.055 – the horizontal resistance – and a very important resistance block just below the $0.060 handle, where multiple layers of resistance are located. The clearance of $0.045 would also generate more interest to buy Cardano.
Looking more mid-term, the support at $0.030 is still expected to provide significant demand for ADA while the zone around $0.060 is really crucial for any bigger ADA move in the future.
Cardano looks well-positioned to continue advancing, both in fundamental and technical context. The price may gain around 20% or 30% in the next few weeks if the short-term resistance is successfully cleared.