Bitcoin News Today: Institutional Capital Fuels Altcoin Rotation—ADA’s Wedge Points to $2.91 Breakout

Cardano (ADA) has shown a recurring technical pattern known as a falling wedge, which analysts suggest could signal a major price breakout. Market analyst Javon Marks highlighted that ADA has formed three falling wedge structures since 2023, each followed by a sharp price increase after a period of consolidation within narrowing trendlines. The first instance occurred in 2023, with ADA dropping to $0.26 before surging to $0.81 by March 2024. A larger-scale wedge followed in late 2024, leading to a price increase from $0.32 to $1.32 by December 2024. Currently, ADA is trading around $0.83 and appears to be in the early stages of another potential breakout. Marks projected a 40% to 57% price increase, potentially pushing ADA to between $1.17 and $1.31. He also cited a longer-term target of $2.91, which would mark a 250% gain from ADA’s current price.

The broader crypto market has also seen a shift in investor sentiment. Santiment, a blockchain analytics platform, reported that Cardano’s crowd sentiment recently reached a five-month low, despite ADA posting a 5% gain over three weeks. The firm noted that such conditions often indicate an accumulation phase, where smaller traders sell and larger players step in to buy. This dynamic is being echoed by other analysts, such as Sjuul from AltCryptoCast, who dismissed recent panic-driven bearish sentiment as noise and emphasized the continued strength in ADA’s price structure. Meanwhile, crypto influencer Hailey pointed out that ADA’s recent breakout and retest of key levels mirror setups that have historically preceded major reversals, suggesting the token may follow a similar trajectory to XRP in recent months.

The evolving crypto landscape also shows a broader trend of Bitcoin being perceived as a store of value rather than a spending currency, according to Sebastien Borget, co-founder of The Sandbox. This shift has led to increased transactional utility being concentrated in altcoin ecosystems, particularly in sectors like gaming and digital art. Borget emphasized that altcoins are becoming essential for enabling fluid economies across various blockchain applications and services. This narrative supports the idea that altcoins, including ADA, may outperform Bitcoin in certain market conditions, especially during risk-on phases. Traders are advised to monitor Bitcoin’s dominance and altcoin volume rotations, with cross-chain infrastructure and application-layer tokens presenting potential opportunities.

Institutional activity has also contributed to the growing momentum in altcoins. Bloomberg ETF analyst James Seyffart noted that the current altcoin rally is being driven by corporate treasuries and institutional capital, rather than retail speculation. Digital Asset Treasury Companies (DATCOs) have been at the center of this movement, with firms like Tom Lee’s Bitmine and Nasdaq-listed BNB Network Company making significant purchases in Ethereum and Binance Coin, respectively. These treasury allocations have outperformed many of their rivals and suggest a structural shift in institutional preferences toward diversified exposure across multiple cryptocurrencies. Seyffart also highlighted a growing pipeline of crypto ETF applications awaiting SEC approval, covering assets like Dogecoin, Chainlink, and Solana, among others.

The market is currently showing signs of a rotation from Bitcoin into altcoins, as indicated by a drop in Bitcoin dominance from 65% to 58%. This decline historically has been a precursor to significant altcoin rallies when dominance falls below 40%. The TOTAL3 chart, which tracks the market cap of cryptocurrencies excluding Bitcoin and Ethereum, is showing a tightening structure with support and resistance levels converging. If the market breaks above $1.15 trillion, it could move toward $1.35 trillion in the short term, with further upside dependent on ongoing ETF approvals and institutional adoption. The combination of technical patterns, institutional buying, and shifting market sentiment suggests that the current environment could set the stage for a new phase of altcoin growth.

Source: [1] Cardano Falling Wedge Breakout Eyes Run to $1.2 Before ... (https://thecryptobasic.com/2025/09/04/cardano-falling-wedge-breakout-eyes-run-to-1-2-before-uptick-to-2-91/) [2] BTC Store-of-Value Narrative vs Altcoin Utility: 5 Trading Takeaways from Bitcoin Asia 2025 Panel (https://blockchain.news/flashnews/btc-store-of-value-narrative-vs-altcoin-utility-5-trading-takeaways-from-bitcoin-asia-2025-panel) [3] Market mood sours as sentiment falls into fear territory (https://www.mitrade.com/insights/news/live-news/article-3-1102170-20250907) [4] Altcoin Season Officially Begins: Bloomberg Analyst (https://finance.yahoo.com/news/altcoin-season-officially-begins-bloomberg-101053860.html)