Cardano’s Plomin Upgrade: What Does It Mean for ADA and Traders?

The Plomin hard fork for Cardano is so close to reality. The Interim Constitutional Committee (ICC) has given their unanimous thumbs up, and with that, we are on the cusp of something big. This upgrade is anticipated to change the game for Cardano’s blockchain, but the question is, will it also change ADA’s fate in the crypto market?

As traders, we are staring down a resistance level at $1 for ADA. Can this new technology help break it, or is it just another bump in the road? Let’s dig into what this means for our crypto trading strategies.

What’s Happening with the Plomin Upgrade?

What is the Plomin upgrade anyway? Well, it’s a big deal. The ICC votes were all positive, which means they believe in this upgrade. With this vote, Cardano is clearing a major hurdle. The upgrade is set to be implemented on January 29, 2025, and it promises to make the blockchain even more robust.

But here’s the kicker: major upgrades often lead to increased market activity and price fluctuations. Just look at Ethereum and its shift to proof-of-stake. Or Bitcoin’s BCH May 2025 upgrade. People are anticipating something big, and that has led to price increases before the actual event.

Implications for Traders

For those of us who dabble in short-term trading cryptocurrency, what this means is that we have a little time to brace ourselves. Cardano’s price is currently at a crossroads, facing the $1 resistance, bolstered by the 50-day Simple Moving Average.

In the last three days, ADA has tried to break through that $1 barrier but with little success. Each time it climbs, it gets pushed back down. If it does manage to sustain a move above $1, we could be looking at further gains, maybe even hitting $1.10 or $1.20. But if it can’t, then expect a retreat to around $0.90.

At the moment, ADA is up 4% over the last 24 hours, sitting at $1.

What Does This Mean for Digital Coin Trading Platforms?

Now, as for the digital coin trading platform side of things, it’s crucial that they adapt to the new upgrades. They need to first understand what the upgrades entail. For instance, Bitcoin’s Taproot upgrade introduced new efficiencies in transaction handling.

Then, they have to update their algorithms to reflect these changes. This could mean adjusting transaction verification methods or optimizing for faster, cheaper transactions.

Lastly, testing is key. Before they roll out the new algorithms, they need to ensure everything works smoothly and securely.

As we move forward with Cardano’s Plomin upgrade, we need to consider what this means not just for ADA, but for the entire crypto market. How will it affect trading strategies? What kind of market dynamics are we looking at? The answers may not be clear yet, but they’re certainly worth pondering.