After a challenging 2024, Cardano (ADA) has ignited investor enthusiasm with a remarkable price surge, climbing from $0.80 to $1.14 at press time. This resurgence has been particularly evident in the ADA/BTC pair, suggesting a growing preference for Cardano among investors.
Grayscale's Reinvestment Fuels ADA's Momentum
Adding fuel to the fire, Grayscale's Digital Large Cap Fund (GDLC) has quietly added ADA back to its portfolio. This move carries significant weight, especially considering the potential approval of the GDLC as an exchange-traded fund (ETF). With Bitcoin and Ethereum already experiencing substantial growth due to ETF exposure, the inclusion of Cardano could trigger a similar breakout.
Technical Indicators Point to Further Gains
The recent surge has propelled Cardano's Open Interest (OI) to a new high of $1.31 billion, surpassing even the peak seen during the "Trump pump." This surge in OI, coupled with a 30% increase in trading volume and rising spot outflows, suggests a strong bullish sentiment.
However, maintaining this momentum hinges on continued whale accumulation. A sudden shift in the delicate balance between short and long liquidations could trigger a sharp decline, squeezing out long positions.
Bitcoin Dominance Weakness Signals Altcoin Season
The recent "death cross" in Bitcoin dominance – a bearish technical signal – could pave the way for a flourishing altcoin season. With Bitcoin's dominance waning, investors may increasingly seek out alternative cryptocurrencies with high growth potential, potentially propelling Cardano to the forefront of the next altcoin cycle.
Looking Ahead
If the current bullish trend persists, Cardano could easily reach $1.50 in the near term. This surge, combined with the growing institutional interest and the potential for an altcoin season, positions Cardano as a cryptocurrency to watch closely in the coming months.
January 2025, Cryptoniteuae