- Kadena price has staged a strong recovery in the past few days.
- It has jumped by more than 40% from the lowest level this year.
- This could be a dead cat bounce, which is a short-term rally.
Kadena price has joined other altcoins in rebounding as the crypto fear and greed index moved to the greed area. KDA token jumped to a high of $0.7226, the highest point since June 10th. At its peak, Kadena was up by over 40% from the lowest level this year.
Kadena Marmalade upgrade
Kadena price has jumped, helped by the improving sentiment in the industry. It has joined other altcoins like Bitcoin Cash, Stacks, Optimism, and Pepe in rebounding. As I wrote in my previous article on Bitcoin Cash, this rally is mostly because of the positive news from large companies like Blackrock and Deutsche Bank.
Kadena is also rallying after the developers unveiled the Marmalade’s V2 upgrade meant to make it a leading player in the non-fungible token (NFT) industry. The neww standard is a major leap in the ecosystem that is intended to bring additional features in the ecosystem.
One of the most important part of this upgrade is the off-chain URI with a standardized metadata format. This new upgrade will open the door for NFT marketplaces to easily fetch necessary data. It also introduced the stacking of policies, meaning that tokens can accommodate N number of policies. You can read more about the upgrade here.
For starters, Kadena is a proof-of-work blockchain that aims to become the best alternative to Ethereum. It has numerous fees such as fast speeds and extremely low gas fees. Unlike Ethereum, fees in Kadena’s ecosystem are extremely negligible.
Most importantly, Kadena is a proof-of-work cryptocurrency, meaning that it does not have staking capabilities. As such, like Bitcoin and Litecoin, there is a likelihood that authorities will not crack down on the coin.
The challenge for Kadena is that it has not gained traction among developers despite its exciting features. For example, data by DeFi Llama shows that it has just $3.4 million in total value locked (TVL) in its ecosystem.
Kadena price forecast
The daily chart shows that the KDA price bottomed at $0.4987 during the weekend. Since then, the coin has staged a strong comeback as altcoins rally. Despite the recovery, the coin remains below the 50-day moving average.
Kadena has also dropped below the important level at $0.786, the lowest point in October 2022. Therefore, I believe that this recovery will be temporary until the Kadena price moves above the resistance level at $0.786. If this happens, the coin will likely jump to the next resistance point at $1. On the flip side, a drop below the support at $0.5660 will signal that there are more sellers who will be keen to push it below the YTD low of $0.4987.
