Cardano (ADA) Eyes $2.50 Amid Growing Institutional Interest & Surging Staking Addresses
Cardano (ADA), the fifth-largest cryptocurrency by market cap saw a minor correction in price today falling below the $2 mark. At the time of writing, ADA was trying to reclaim the $2 price to make a move forward. The altcoin registered one of the strongest surges in the past week rising to a new three-month high of $2.25.
The key resistance for the altcoin lies at $2.05 while the key support is at $1.92. The selling pressure is currently on the higher side and the altcoin needs to hold it’s positive above $1.90 to continue its bullish momentum. A break above the immediate resistance will bring $2.20 resistance in play breaking which the altcoin can eye a new ATH of $2.50.
The altcoin is riding high on the back of series of developments and positive on-chain growth leading up to the key smart contract integration scheduled for September 12 through Alonzo Purple hard fork. Cardano launched the public testnet for Alonzo Purple a couple of weeks back and has maintained its bullish surge since then.
The staking address on the Cardano blockchain has also seen a 24% rise in two months reflecting growing traders’ interest in the altcoin as the smart contract integration date nears. Cardano’s data aggregating tool Pooltool indicated that the number of staking addresses has grown from 600,000 in the first week of June to 755,306 on August 18. The staked wallet now contains $45.99 billion worth of ADA out of the total $64.5 billion supply.
Cardano Institutional Fund Inflow is Net Positive
The Alonzo Purple upgrade has created a similar hype as the EIP-1559 and London Hardfork did for Ethereum. The growing anticipation around the upgrade has led to a surge in institutional interest towards Cardano. CoinShares data indicated that weekly flows for most of the crypto assets have been negative including Bitcoin and Ethereum. On the other hand, Cardano saw a net positive flow against the common trend.
The selling pressure is currently higher at $1.90 being a strong support, but as the upgrade date nears the positive sentiment can very well drive it to the new ATH.
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