Cardano launched hardfork OBFT; ADA/USD extends the recovery

Cardano (ADA), now the 11th largest digital asset with the current market value of $1.5 billion, has gained 2.7% in recent 24 hours to trade at $0.0590 at the time of writing. ADA/USD hit the recent bottom at $0.0551 on Thursday amid major sell-off on the cryptocurrency market.

Cardano underwent a hardfork

Cardano developers announced that the hardfork Ouroboros Byzantine Fault-Tolerant (OBFT) had been launched successfully on the mainnet.

 #Cardano OBFT hard fork successfully completed! Cardano recently underwent a mainnet hard fork (=software protocol update) on 20-02-2020, during epoch 176, to pave the way for the "#Shelley" mainnet release.

The update will pave the way to a major release known as Shelley, which is considered as a decentralized implementation of the Ouroboros Genesis consensus algorithm. The head of blockchain company IOHK Charles Hoskinson said that OBFT era had begun.

ADA/USD: Technical picture

On the intraday charts, the recovery is capped by $0.0600. This resistance is reinforced by SMA100 1-hour and the upper line of 1-hour Bollinger Band. Once it is out of the way, the upside is likely to gain traction with the next focus on SMA200 1-hour at $0.0630, which coincides the upper boundary of the previous consolidation channel.

On the downside, the first support comes at $0.0570 ( the lower line of 1-hour Bollinger Band). It is closely followed by the recent low of $0.0551. SMA200 4-hour and the lower line of 4-hour Bollinger Band are also spotted on approach to this support level. If this barrier is broken, the selling pressure will increase and take the price towards $0.0500.

ADA/USD 1-hour chart