Despite ‘Valentine Upgrade,’ Cardano [ADA] investors remain dissatisfied

Developers announced the SECP mainnet update would take place on February 14 in a discord post given to the Cardano [ADA] community. Tim Harrison, Input Output’s Community Vice President, tweeted the internal message on February 10th.

According to the details in the published image, Cardano has changed the SCEP name to the “Valentine” update. The SCEP, suggested in November 2022, would seek to promote cross-chain development on the Proof-of-Stake (PoS) blockchain.

Becky Hopwood, IOHK’s community organizer, advised Cardano node users to check that they have upgraded to the 1.35.5 version in readiness for the event scheduled for 21:44: UTC. This occurred due to the SECP’s incompatibility with the 1.35.4 node.

Aside from that, the SECP explanation revealed that the Plutus cryptographic system would receive new built-in functionalities. The communiqué stated,

“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.”

According to CoinMarketCap, the price of ADA was in line with the unfavorable market mood. As of this writing, the open-source project’s token was trading at $0.365, 6.64% lower than the previous day’s value.

Regardless, the Bollinger Bands (BB) calculated from the daily chart suggested that ADA was approaching contractual volatility. However, the price fell into the lower range as a result of the fall. This condition indicated that ADA had been oversold.

Furthermore, the Awesome Oscillator (AO) indicated that ADA’s momentum was negative. As a result, amid the repeated red bars above, holders may not see a good price reaction. However, greater buying momentum in a short period of time could reverse the trend.

In the meantime, on-chain development activity increased to 89.5. This was Cardano’s highest level since December 18th. The measure relates to how frequently a project commits to improving its network. As a result, this rise suggests that ADA developers were ramping up in anticipation of the Valentine’s Day event.

The Market Value to Realized Value (MVRV) ratio demonstrated that portfolio advances in January had been reversed in terms of ADA’s return for holders. The MVRV ratio was -8.232% at the time of publication. This meant that until press time, ADA’s performance in February was far from yielding gains.