Key Takeaways:
Cardano's ADA rose 1.08% to $0.2147 as a Leios testnet run lifted throughput capacity 500%, keeping the $0.23 resistance zone in focus.
The Cardanians account on X reported the results on Aug. 27, stating that Ouroboros Leios increased Cardano's throughput capacity by 500% on its first testnet run. Four more testing stages remain before the expected mainnet hard fork.
CoinGlass data shows Cardano's open interest peaked near $580 million during the recent rally before easing to about $480 million as of Aug. 27. TradingView data places the upper Bollinger Band at $0.2344, with the middle band at $0.1972. CoinCodex's short-term model projects ADA at $0.2148 for Aug. 28, climbing gradually to $0.2177 by Sept. 1.
The Leios upgrade aims to improve Cardano's transaction processing capacity, giving the network a stronger scalability story against Ethereum and Solana. A break above the $0.23 to $0.2344 resistance band could open further upside, while a drop below $0.2004 would shift attention back to $0.1972.
ADA's price action follows a period of consolidation above the $0.2004 level, which has acted as a floor during the recent recovery. The token's position above both the support and the middle Bollinger Band points to a short-term structure favoring continued gains.
The Leios protocol is designed to increase how many transactions Cardano can process. The first testnet run delivered a 500% throughput increase, according to the Cardanians account. A successful rollout could strengthen confidence in the network's development as Cardano competes with other Layer-1 chains on scalability.
The pullback in open interest from $580 million to $480 million suggests some derivatives traders closed positions after the recent rally. Still, open interest remains higher than most levels seen in July, keeping derivatives flows an important metric as ADA approaches the $0.23 resistance area.
CoinCodex's short-term forecast shows a mild upward drift rather than a sudden breakout, with ADA projected to reach $0.2177 by Sept. 1. The token's next moves depend on whether it holds above $0.2004 and how it reacts near the $0.23 to $0.2344 resistance band.
This upgrade represents a significant technical milestone for Cardano. If ADA breaks above the $0.23 resistance level, it could trigger further upside momentum and attract developer and investor attention to the network's improved scalability.
This article is for informational purposes only and does not constitute investment advice.
