Cardano (ADA) prices have been under pressure in recent months, but new signals on the chart suggest a potential breakout.
What Drives Cardano's Price Upward?
One of the main factors contributing to the recent price increase for Cardano is the support from institutional investors. Cardano has secured the third spot in Grayscale's Smart Contract Platform Fund, making up 18.57% of the total portfolio, only behind Ethereum and Solana. This news adds confidence to the market as Grayscale manages billions in crypto assets and influences how institutions view digital assets. The increase in trust towards Cardano's fundamentals comes amid competition with other layer-1 projects.
ADA Price Predictions: Is a Reversal Possible?
Analyzing current data, we see that ADA price is approaching the first key resistance level around $0.70. If broken with a daily close above $0.70, the next targets would likely be $0.75 and $0.80. The potential rise of 11.5% from the current price of $0.628 to $0.70 makes the current levels attractive for medium-term investors.
Risks and Prospects for Cardano
However, there is a risk of a pullback if the price of Cardano fails to clear $0.70 and falls below the $0.58 level. This price range has shown support, which strengthens buyer interest, but a close below $0.58 could lead to movement towards $0.55 and lower levels. It is important to monitor the Relative Strength Index (RSI), currently at 58. A reading above 60 could trigger significant gains.
The price chart for Cardano shows positive signals, but additional confirming information is needed for accurate predictions. In the coming days, it will become clearer whether ADA can surpass $0.70 and higher.
