Cardano Surges 10% as Short Positions Liquidated

Cardano's price has surged by nearly 10% in the past 24 hours, driven by a wave of liquidations that wiped out $2.98 million in short positions. This significant jump has boosted the value of ADA, with the cryptocurrency currently trading around $0.628. The ongoing momentum has instilled confidence among traders and analysts, who now believe that Cardano could continue to gain traction and climb the ranks in market capitalization.

The recent price surge is attributed to strong institutional backing and Bitcoin’s recent surge past its June high. Cardano has secured the third position in Grayscale’s Smart Contract Platform Fund, which holds nearly $3.5 million in AUM. Notably, Cardano accounts for almost one-fifth of this fund, making up an impressive 18.57% of the total portfolio, trailing only behind Ethereum and Solana. This allocation sends a clear message to the market, signaling that Grayscale considers Cardano a significant contender in the smart contract arena.

On the technical front, the ADA price on the daily chart indicates that price action is gaining strength, suggesting that the long-trapped declining range could be breached if it maintains momentum above the $0.70 resistance level. A daily close above this mark would signify a breakout from a multi-month declining wedge. Additionally, experts point out that ADA has formed a powerful long-term signal: the Golden Cross on the weekly chart. This formation marks a historic moment for Cardano, indicating potential for further growth in the future.

If this buying momentum persists, Cardano may soon test its immediate resistance level near $0.70. Experts are even speculating that it could retest the $1 mark by the end of July. The current price of Cardano is $0.58, reflecting a 6.6% gain over the past week, pushing its market cap over $21 billion. This surge in price and market cap is a testament to the growing interest and confidence in Cardano's potential.

Cardano's market capitalization has reached $22.11 billion, with a notable 42.43% rise in trading volume, now at $1.09 Billion. The platform’s long-term vision as a smart contract solution has increased institutions interest and that itself provides a solid foundation for its growth. The recent price surge aligns with ongoing interest in ADA, as the cryptocurrency has managed to hold support at key levels, with the price testing the $0.58 range. This bullish trend is further fueled by a potential bullish wedge breakout, with open interest surging, which has contributed to ADA's rally. The price of Cardano has been consolidating in an ascending trend after rebounding from a pivotal support level at $0.51. Analysts have noted that the price has shown signs of seller exhaustion above $0.57, indicating a bullish divergence that signals a potential rally.