- ADA is emerging as a preferred altcoin for institutional diversification from Bitcoin (BTC).
- The increased interest by retail investors in ADA is impacting the price positively.
- The forthcoming full decentralization of Cardano is expected to positively influence price growth.
Cardano held on to its stay above $1 today, rising by about 0.6% over the past 24 hours to trade at $1.16 at the time of going to press. ADA has been rising in the past few days and has now hit $37 billion in market capitalization to become the fourth most-valuable cryptocurrency.
In a more pronounced way, ADA is now up by over 500% year-date. Increased institutional investor interest, coupled with structural tweaks to ADA’s architecture, has helped propel prices higher.
The interest curve is on the rise
Institutional adoption of ADA is growing at a faster rate this year. Retail outlets are increasingly adopting this cryptocurrency as a means of payment. This will certainly play a major role in pushing ADA as an investment asset among larger firms. A recent report by Voyager Digital shows that most of the retail attention is on Cardano, not Bitcoin.
Individual investors are also keen on raising their stakes on Cardano.Billionaire Mike Novogratz had been bullish in the recent days leading to ADA price exceeding $1. He has also taken to social media, tweeting yesterday, to ask his followers if and why they were using ADA. Such social media activities by influential people do a lot to build traction and investment in cryptocurrencies.
Currently, the Google searches for Cardano have shot up. Data on Google Trends indicates that last month ADA exceeded the highs it reached in 2017. The data is a depiction of the upsurge in interest for ADA, as more investors look to spread their risks and increase their profit margins away from BTC and ETH.
UAE’s FD7 Ventures has also recently launched a micro-fund targeted at the Indian market and valued at about $200 million. The firm intends to venture into ADA and Polkadot using those funds.
The move shows an emerging trend where firms are increasingly diversifying from Bitcoin, following the firm’s earlier sale of BTC holdings worth more than $700 million to buy DOT and ADA.
Elsewhere, in the Swiss Zug Crypto Valley, Cardano has achieved a major milestone. ADA is now the second-most-valuable digital currency among Zug Crypto Valley’s 11 Unicorn crypto-assets. The rise was attributable to the recent surge in Cardano prices.
The power from within
Additionally, Cardano has recently added Native Tokens with the recent Mary Upgrade. Following this upgrade, developers will be able to mint a variety of crypto assets on the network that include NFTs, security, and utility tokens, among others. This will make other platforms more receptive to the integration of Cardano in their blockchains.
ADA/USD technical outlook
Cardano has broken past the $1 resistance level. This indicates a bullish divergence. The ADA/USD pair will find the first support at $1.08, and the second support level will be at $1.12. However, ADA will encounter the first resistance at 1.17, beyond which it will struggle to break the second resistance beyond $1.19. On the flip side, a slide below $1.08 could herald a spiral below $1.
The Relative Strength Index (RSI) is also bullish. If the trading volume for ADA increases significantly, the price may move to a new record high.