ADA, the native token of Cardano Network has shown a potential upward movement after a retest of the support level. The token saw a move upward of 2.4% late into Sunday, and a 5% drop thereafter. Since then, the price rebounded higher once more with some potential move upward.
Investors King gathered that ADA has been consolidating around $0.38 and $0.40 over the past few days. The token bulls knocked on the doors of the resistance at $0.42 before currently trading at $0.40 at the time of writing this report.
A look at the 4-hour chart timeframe shows that ADA is forming a bullish structure after breaking past the $0.38 resistance and turning it to support.
Moreover, ADA was also in demand in the derivatives market as its Binance funding rate was relatively high while its on-chain metrics also looked pretty optimistic. ADA’s recent price gain was accompanied by an increase in volume.
After a few days of decline, Ada’s Market Value to Realised Value (MVRV) ratio also registered an increase and managed to remain on the upper side.
Meanwhile, the Cardano (ADA) blockchain has released the latest network updates that aim to help the network establish itself in the decentralised finance (DeFi) space while influencing the value of its native token.
The upgrade which is known as Hydra Protocol will enhance the functionality of the Cardano Network.
Cardano has introduced the new protocol as a way to achieve this much-needed scalability. While the Cardano blockchain is capable of producing a block every 20 seconds, the total number of transactions that can be recorded in a block is quite limited.
In another development, Cardano creator Charles Hoskinson has shared his views on recent regulatory actions against the crypto industry.
According to Hoskinson, the increased regulation of the crypto industry is a result of FTX collapse. “The minute it happened, I knew the entire industry was in for a seriously hard time,” he noted.