With the latest scalability evaluations being made by Cardano, the ADA crypto market is receiving a new impetus, with the Leios upgrade showing a high transaction throughput rate.
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As of now, the price of Cardano price is at $0.2191, showing an increase of 8.14% over the last 24 hours. This increase comes as Cardano enthusiasts focus on the results of testing that yielded around 1,000 TPS using Ouroboros Leios.
Also Read: Cardano Price Remains Near $0.21 Amid Hoskinson’s Push for Growth
Why Is the Cardano Price Rising Together With the Development of Leios?
The discussion arose based on the Cardanians X channel stating that IOG developers were able to reach 1,000 TPS during the testing of Ouroboros Leios.
The post stated, “~1,000 TPS with Ouroboros Leios in testing.” It was also added that “If all goes right, Leios could be live on Cardano mainnet this year.”
The comparison of the throughput near 1,000 TPS and the current performance of 10 TPS on the network draws attention to the scalability goals of Cardano.
Higher throughput would enable more capacity for the network to cope with increased demands and increased ecosystem activity. It should be mentioned, though, that the 1,000 TPS is an observed testing result and not the current mainnet throughput.
What Does the Cardano Price Chart Tell Us?
ADA is currently trading above the 20-day Bollinger Band midline at $0.2079. The upper line is positioned at $0.2270; hence, it is a near-term resistance reference, while the supports near this region are $0.2050 and $0.2079.
The current RSI is at 58.23, which is higher than the moving-average RSI of 52.95. Therefore, there is positive momentum, despite the RSI being below the popular benchmark figure of 70. Volume data is not available on the supplied TradingView chart.
Also Read: Cardano Price Remains Near $0.21 Amid Hoskinson’s Push for Growth
In What Way Does Leios Impact Cardano Price Momentum?
The technical framework mostly supports the shift towards Leios. A break above the $0.2270 level can put the upper-band resistance under further pressure, while dipping below the $0.2050 level may impact the current setup.
Another benchmark in this regard is the lower Bollinger Band that stands at $0.1889.
The technical picture does not establish that the Leios development itself caused the price increase. Instead, the testing results provide a fundamental catalyst that coincides with the current positive price momentum.
What Can We Learn From the Cardano DeFiLlama Chart?
In the accompanying DeFiLlama chart, the total value locked (TVL) for Cardano stands at around $57 million according to the latest reading.
Activity for the last few days with respect to TVL, DEX activities, number of active addresses, and transactions has fluctuated to indicate ongoing use of the platform without an acceleration being clearly established in the supplied data.
This is relevant to the Leios discussion because higher throughput would matter most if Cardano needs to handle greater transaction and application activity. The supplied chart shows continued activity, but it does not by itself confirm a major acceleration in ecosystem growth.
Also Read: ADA Price Could Break Higher to $0.24 as Cardano Gains x402 Integration
Which Cardano Price Trends Should Traders Look Out For Next?
As per CoinGlass statistics, the open interest of Cardano currently sits at around $430 million in the latest observation, lower than the peak level recorded in August close to $580 million and still above the $400 million level.
The chart of liquidations features repeated spikes in both short and long positions and suggests continued trading in ADA with leverage.
The primary driver of the current attention is Leios testing, while the technical analysis suggests that ADA is trading above near-term support levels and with positive momentum in RSI.
Traders should gauge if the price can sustain above $0.2079 and test the level of $0.2270 as developments progress.
The crypto space is still witnessing high volatility, meaning that price action can change quickly as traders respond to market sentiment, derivatives activity, and upcoming Cardano developments.
Also Read: ADA Price Could Make a Bounce to $0.23 as Cardano Ecosystem Grows
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
