Cardano’s ADA Token Jumps 5% After Being Listed on Coinbase, Sees 500% Increase in Inflows

Cardano’s price surged by 5% in the past 24 hours, approaching the crucial resistance level of $0.7. This uptick in value signifies a potential shift in the market’s momentum towards a bullish trend. Among the top 10 altcoins, Cardano outperformed its peers, with Dogecoin coming in a close second with a 6% increase.

Despite experiencing a decline of more than 10% over the week, Cardano has returned to trading levels reminiscent of the pre-ETF excitement. Several factors contributed to this recent price surge. Firstly, a modest bullish sentiment permeated the overall crypto industry, leading to a 2% increase in the industry’s market cap, surpassing 2.71 trillion dollars. Notably, Bitcoin and Ethereum also saw positive gains of 2% and 3% respectively.

Additionally, the surge in Cardano’s value can be attributed to a significant increase in net inflows into Cardano-related investment products, soaring by over 500%. This surge in investments marks a turning point from the previously lackluster investor interest in altcoin funds. In the week ending March 24th, only $100,000 was invested in Cardano, but during the final week of the month, investments spiked to $0.6 million. Altcoin ETPs saw a substantial $33 million in net inflows for the week, indicating a favorable shift in investor sentiment.

Furthermore, the introduction of Cardano futures on Coinbase also played a role in bolstering the cryptocurrency’s value. The listing of this derivative product on Coinbase, following certification from the CFTC, has opened up Cardano to a broader investor base, including institutional and retail investors seeking exposure to leveraged crypto assets.

Despite the recent price surge, there are indications that Cardano may struggle to sustain this bullish momentum. Historically, major tariff announcements have negatively impacted Cardano prices, casting doubt on the sustainability of this current uptrend. From a technical standpoint, Cardano lacks the necessary bullish pressure to initiate and maintain a breakout. The MACD indicator shows a bearish crossover or stagnant momentum, suggesting a lack of strong buying interest. Additionally, the RSI hovers around 44-46, below the neutral level of 50, indicating a lack of robust bullish pressure.

Moreover, Cardano faces resistance in breaking through the $0.74- $0.84 zone, requiring a significant influx of buyers to propel the price higher. Without strong buyer participation, the price may stagnate or even retreat to test support at $0.65. As the market continues to evolve, it remains critical for investors to monitor these key indicators and market dynamics to make informed decisions regarding their investments in Cardano and other cryptocurrencies.