Cardano price stays above the critical breakout point as the recent update to the Ouroboros Leios further strengthens the positive case, while the derivatives market is pointing to a gradual recovery.
At the time of writing, Cardano (ADA) is trading at $0.2147, which is a rise of 1.08% compared to 24 hours ago.
The price remains above the important $0.2004 level following the rise from previous levels, thus focusing on the $0.23 level.
Also Read: Cardano Eyes 1 Billion Users With New Web3 Utility Focus
Increased Cardano Price Momentum Observed Post-Leios Upgrade
According to recent reports on the Cardanians X Twitter handle, “Ouroboros Leios increased Cardano’s throughput capacity by 500% on the first test.” Further, it is pointed out that there are four more testing stages left prior to the expected mainnet hard fork.
It is important because Leios aims at improving Cardano’s transaction processing capabilities. The update could strengthen the broader positive sentiment around Cardano’s network development.
What Does the Cardano Price Chart Reveal?
Based on data from TradingView, ADA is trading above the $0.2004 support level, while the middle line of Bollinger Bands is at $0.1972. In this case, both levels are below the present price, which means that a positive short-term structure is formed.
The upper Bollinger Band stands at $0.2344, and, therefore, the $0.23-$0.2344 area serves as an immediate resistance level.
A move above this level could confirm a stronger breakout, while a break below $0.2004 will weaken the current structure.
Also Read : Cardano Price Eyes $0.1916 After Holding $0.1745 as ADA Expands AI Push
What Is Driving Cardano Price Open Interest?
Based on the information by CoinGlass, the Cardano open interest has risen considerably during the latest price surge, reaching around $580 million but dropping back to about $480 million as of August 27.
The decline means that some derivatives positions were unwound after the previous increase in the price.
However, the open interest level is still relatively high compared to most of July. This keeps derivatives positioning as an important factor to watch as ADA approaches the $0.23 resistance area.
Can Cardano Price Reach $0.23?
According to CoinCodex‘s short-term prediction, ADA will have a target of reaching $0.2148 on August 28. The predictions further show $0.2155, $0.2162, $0.2170, and $0.2177 until September 1.
Therefore, there is an indication of a mild upward trend instead of an instant breakout toward $0.23.
In the case of bullish predictions, remaining above the support level of $0.2004 will keep the focus on the upper Bollinger Band of $0.2344.
A breakout above the resistance level could generate further momentum, but a drop below $0.2004 will see the shift towards the middle band of $0.1972.
Cryptocurrency markets remain highly volatile, and it is essential for investors to watch price action and upcoming catalysts.
Also Read: ADA Price Could Rally Toward $0.44 as Cardano DeFi Gets 120M ADA Boost
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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