TL;DR

Binance will support Cardanos Plomin hard fork upgrade. Despite the companys upcoming temporary suspension of ADA transactions, the assets price remains rather unaffected, with mixed analyst predictions on its next move.

The Network Upgrade

The worlds biggest cryptocurrency exchange announced that it will temporarily halt the deposits and withdrawals of tokens on the Cardano (ADA) network on January 29. The effort aims to support its network upgrade and hard fork to ensure the best user experience. Token trading will not be impacted, and the company will carry out all technical requirements for users. 

Deposits and withdrawals for token(s) on the aforementioned network will be reopened once the upgraded network is deemed to be stable, the exchange revealed.

Binance also added that no further announcement on the matter will be posted. This means clients should take any information they come across on the Internet with a grain of salt.  

The development in question refers to the so-called Plomin hard fork, which is the second part of the Chang upgrade to Cardano. It is named in honor of the late Matthew Plomin, a notable contributor to the Cardano community, and marks a pivotal transition towards full decentralized governance under the Voltaire era. 

The hard fork introduces a system where ADA holders can actively participate in the networks decision-making processes and vote directly on protocol updates.

ADA Price Outlook

The price of ADA has remained rather steady following Binances announcement, trading at approximately $0.94 (per CoinGeckos data). In the past several weeks, the asset experienced severe turbulence, jumping above $1.15 prior to Donald Trumps inauguration and plummeting below $0.90 during the crypto market correction witnessed at the start of the business week.

ADA Price, Source: CoinGecko Many analysts believe ADA could enter a substantial rally in the near future, citing various technical patterns and historical performance. The X user That Martini Guy, for instance, told his over 650,000 followers on X that the altcoin season might be just around the corner. This might result in a price explosion to as high as $3 for ADA (based on what happened in 2021).

On the other hand, some made bearish forecasts. Ali Martinez suggested that the upcoming FOMC meeting, scheduled for today (January 29), could trigger enhanced volatility in the crypto market. In addition, he claimed that the TD Sequential indicator had flashed the sell signal on the hourly chart for ADA and other leading digital assets.