The Cardano price (ADA) has recently displayed renewed strength, surging nearly 10% in the past 24 hours. This impressive jump was fueled by a wave of liquidations, with $2.98 million in short positions being wiped out, from a total 24-h liquidation of $3.40 million, causing the ADA price to spike significantly.
Currently trading around $0.628, this ongoing momentum has pumped great courage among traders and analysts alike, easing their fear. Now many began to believe that Cardano crypto could continue to gain traction and even climb the ranks in market capitalization.
The key factor that drove the recent Cardano crypto price increase is the strong backing from institutional investors, coupled with Bitcoin’s recent surge past its June high.
If this buying momentum persists, Cardano may soon test its immediate resistance level near $0.70. Experts are even speculating that it could retest the $1 mark by the end of July.
What’s Strengthening Cardano’s Fundamentals?
Cardano is currently reflecting increasing bullish pressure, with its market capitalization reaching $22.11 billion and a notable 42.43% rise in trading volume, now at $1.09 Billion. The platform’s long-term vision as a smart contract solution has increased institutions interest and that itself provides a solid foundation for its growth.
Adding to this robust foundation is the strong institutional backing that Cardano has received. It has secured the third position in the Grayscale’s Smart Contract Platform Fund, which holds nearly $3.5 million in AUM.
Notably, Cardano accounts for almost one-fifth of this fund, making up an impressive 18.57% of the total portfolio, trailing only behind Ethereum and Solana. This allocation of ADA in this large fund sends a clear powerful message to the market. Which is signaling that Grayscale considers Cardano a significant contender in the smart contract arena.
Is ADA Price $1 Rise On Horizon?
On the technical front, the ADA price on the daily chart indicates that price action is gaining strength, suggesting that the long-trapped declining range could be breached if it maintains momentum above the $0.70 resistance level. A daily close above this mark would signify a breakout from a multi-month declining wedge.
Currently, the Cardano price has surpassed the $0.60 level, supported by the swing low from April. If buying momentum persists, bolstered by strong institutional backing, there is a solid chance for a significant rise toward the $1.00 mark.
Additionally, experts point out that ADA has formed a powerful long-term signal: the Golden Cross on the weekly chart. This formation marks a historic moment for Cardano, indicating potential for further growth in the future.
