The price of Cardano (ADA) has recently shown significant growth, surging by 10% in the past day. This price increase has attracted the attention of analysts and traders, sparking discussions about the future prospects of this cryptocurrency.
Factors Behind Cardano's Price Increase
According to recent data, the price of Cardano rose to $0.628 due to a significant wave of liquidations of short positions. In the last 24 hours, $2.98 million was liquidated, causing a sharp increase in price.
This event has generated heightened interest among traders, who are beginning to view Cardano as a competitive player in the market.
Support from Institutional Investors
One of the key factors behind the successful growth of ADA has been the recent investments from institutional investors. Cardano holds the third position in Grayscale’s Smart Contract Platform Fund, where its share stands at 18.57% of the total assets amounting to $3.5 million. This indicates a considerable interest in the cryptocurrency from major investors.
Technical Analysis and Potential Rise to $1
Looking at technical aspects, the price action of ADA on daily charts shows signs of strengthening. If the momentum continues above the $0.70 resistance level, it could lead to a breakout from a multi-month declining channel. Analysts also point out that the formation of a 'Golden Cross' on the weekly chart suggests potential further growth, including the possibility of reaching the $1 mark.
Recent price changes in Cardano and the support from institutional investors create confidence for further growth prospects of the cryptocurrency. Many analysts expect that ADA may test the $1 level in the coming months if the current trend persists.
