Djed has been jointly built by the COTI layer-1 platform and Cardano’s core development team, Input Output Global, for over a year.
Djed is pegged 1:1 to the USD, is over-collateralized with ADA (similar to DAI) and uses SHEN as a reserve currency. DJED is backed by ADA and requires a reserve ratio of 400-80% to minimize the risk of losing value.
Djed will be used on top of DeFi protocols in the Cardano ecosystem as a stable alternative. COTI revealed that it will add more coins like wrapped BTC (WBTC) and wrapped ETH (WETH) as collateral to mint Djed on Cardano.
The project plans to integrate this algorithmic stablecoin into 40 Cardano applications. Many decentralized exchanges such as MinSwap, Winggriders, and MuesliSwap have already started supporting the stablecoin.
Coti told The Block that they plan to launch DjedPay, a service for Djed payments, at the same time.
Ahead of today’s major milestone, ADA is surging slightly around the $0.36 – $0.38 zone. Meanwhile, 24-hour trading volume decreased by about 6%.
Cardano price prediction for February
Technical analysis from the six-hour time frame favors the continuation of the downtrend. Therefore, it makes a bearish prediction for Cardano in February.
Cardano price completed an upward movement of 5 waves, where wave 5 is the ending diagonal, as evidenced by its wedge shape.
A breakdown from the wedge will confirm that this is the correct number of waves and initiate a downward movement towards the 0.382-0.5 Fib retracement support levels at $0.319-$0.338. The adjustment is likely to take place for most of February.
Otherwise, a decisive close above the wedge would invalidate this bearish forecast. As outlined above, this could initiate an upward movement toward $0.55.
In summary, the ADA price prediction for February is bearish. The price is expected to drop to the $0.319-$0.338 zone. A daily close above $0.39 will invalidate this bearish forecast and could catalyze a rally to $0.55.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision.
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