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Cardano (ADA) has seen a 500% surge in inflows amid increased investor interest in the altcoin market. After weeks of outflows, the latest report from CoinShares reveals that funds are once again flowing into the altcoin market.
According to the most recent CoinShares report, digital asset investment products received $226 million in inflows last week, indicating positive but cautious investors. Altcoins had their first major week of inflows of $33 million, following four weeks of outflows totaling $1.7 billion.
In the week ending March 24, Cardano recorded $0.1 million in inflows. However, in the past week, Cardano has received $0.6 million in inflows, marking a 500% increase.
Tomiwabold OlajideCardano’s inflows align with a broader shift in the crypto market, as it begins to recover from an extended period of outflows. Investors are moving funds back into altcoins, indicating a potential reversal for the sector.
According to a CoinShares report, minor outflows into ETP were recorded on Friday, totaling $74 million, most likely in response to core personal consumption expenditures in the U.S. exceeding expectations, implying that the U.S. Federal Reserve will remain hawkish despite recent data pointing to weak growth.
Cardano price action
At the time of writing, ADA was down 1.94% in the last 24 hours to $0.657 and 11% in the previous seven days due to an extended market sell-off. Cardano has suffered four consecutive days of losses since March 27, with today's slide reaching a low of $0.6296.
Gamza KhanzadaevThe next psychological support level for the ADA price to watch is $0.60. Further down, the primary area of interest is between $0.5794 (reached on Feb. 28) and $0.5197 (reached on Nov. 13, 2024).
If the ADA price recovers from present levels and above the daily SMA 200 at $0.726, bulls will try again to push Cardano over the 50-day SMA at $0.753. If they succeed, ADA may jump to $0.84, then $1.02. A dip to the $0.50 support zone is likely to draw buyers.
Vladislav Sopov
Dan Burgin