Despite ‘Valentine Upgrade,’ Cardano [ADA] investors remain dissatisfied
- Cardano’s development team announced that the SECP 2022 upgrade would take place on February 14.
- ADA might not rally despite the themed update.
In a discord message sent to the Cardano [ADA] community, developers confirmed that the SECP mainnet upgrade would occur on 14 February. The internal memo was shared on Twitter by Tim Harrison, Input Output’s Community Vice President, on 10 February.
February 14th ♥️ #Cardano #Valentine 👍@InputOutputHK
More on the upcoming upgrade here: https://t.co/PStDYIRsP4 pic.twitter.com/WBmQwIS3tP
— Tim Harrison (@timbharrison) February 9, 2023
Realistic or not, here’s ADA’s market cap in ETH’s terms
A Valentine gift for ADA
Details from the shared image showed that Cardano had switched the SCEP name to the “Valentine” upgrade. The SCEP, which was proposed in November 2022, would aim to drive cross-chain development on the Proof-of-Stake (PoS) blockchain.
In preparation for the event billed to occur at 21:44: UTC, Becky Hopwood, IOHK’s community coordinator, asked Cardano node users to ensure that they had upgraded to the 1.35.5 version. This was because the SECP would not be compatible with the 1.35.4 node.
Besides that, information from the SECP explanation showed that there would be new in-built functions to the Plutus cryptographic system. The communique read,
“These built-in functions will become native to Cardano, and since they will be implemented and audited by experts, they will provide the highest level of security. This will allow any Plutus DApp developer to widen the choice of multi-signature or threshold signature design to use.”
ADA: Not in tune with a positive reaction
However, ADA’s price was in tune with the negative market sentiment, according to CoinMarketCap. As of this writing, the token of the open-source project was trading at $0.365 — 6.64% down from the previous day’s value.
Despite this, the Bollinger Bands (BB) derived from the daily chart revealed that ADA was closing in on a contracted volatility status. But the decline resulted in the price hitting the lower band. This condition signified that ADA was oversold.
Additionally, indications from the Awesome Oscillator (AO) revealed that ADA’s momentum was bearish. So, holders may not get a positive price reaction amid the repeated red bars above. However, increased buying momentum within the short timeframe could change the trend.
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In the interim, the on-chain development activity rose to 89.5. This was the highest Cardano had reached since 18 December. The metric refers to the rate at which a project commits to bettering its network. So, this increase implies that ADA developers were high in preparation for the Valentine event.
Concerning ADA’s return for holders, the Market Value to Realized Value (MVRV) ratio revealed that portfolio increases in January had overturned. At the time of writing, the MVRV ratio was -8.232%. This meant that ADA’s performance in February was far from producing gains until press time.