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After Cardano (ADA) set its sights on outshine g Bitcoin, investors have again suffered another disappointment. This is after ADA slumped from a 15% gain in earlier trading. Notably, Cardano jumped above the $0.8 resistance to hit $0.8159 on the the cryptocurrency trading scene.
Is institutional interest boosting trading volume?
Data from CoinMarketCap shows that ADA survived its downward pressure to consolidate on gains it has been making lately.
Market watchers suggest the mild rally might have been activated by Grayscale's move to file for a Cardano exchange-traded fund (ETF). This institutional interest in ADA could have triggered the upsurge in price as investors consider the evolving potential of the coin.
Alex DovbnyaHowever, ADA has been unable to sustain the momentum as the bears have resurfaced, dragging the coin down. Bullish sentiment appears to have cooled off even though investors are still actively accumulating ADA.
Notably, the trading volume has spiked by 88.84% to $1.5 billion in the last 24 hours. Analysts attribute this increased interest to Grayscale's ETF filing.
As of this writing, ADA is trading at $0.7934, representing a 12.98% increase in the last 24 hours. The coin has managed to stay above the $0.75 mark as it struggles to regain new heights.
Upcoming upgrades could boost ADA to key levels
With the recent institutional interest sparked by Grayscale, investors could anticipate other asset managers to begin looking at ETFs for the coin.
Meanwhile, Cardano’s Plomin Hard Fork and Ouroboros Leios upgrades, which support the transition to a fully decentralized governance system, might catalyze ADA’s value. It could also improve the scalability of the chain.
Gamza KhanzadaevSome speculate that ADA might attempt to hit $1.90 after the upgrade. This is as the $3.10 all-time high set on Sept. 1, 2021, remains elusive. Analysts predict that if Cardano breaches the psychological $1 mark again and current trading volume persists, investors should anticipate climbs to $1.06, $1.37, and $1.6.
On a bearish note, it could drop to retest the $0.50 mark overall.
Gamza Khanzadaev
Tomiwabold Olajide
Dan Burgin
Vladislav Sopov