Cardano Surges 23% to $0.77 on Trading Volume Spike

Cardano's price surged 23% to reach an intraday high of $0.77 on July 11, driven by a significant 186% increase in trading volume. However, at the time of reporting, the cryptocurrency had lost over 5% of its value in a single day. Despite this, analysts remain optimistic about the future of Cardano.

According to a notable analyst, the rally for Cardano has just begun and holds significant promise. Multiple factors are expected to drive the cryptocurrency on a parabolic run. These factors include Grayscale's bullish stance on the asset, increased odds of spot Cardano ETF approval, and technical chart strength.

Popular crypto analyst Ali Martinez predicted a massive rally in Cardano's price based on historical chart patterns. He identified $0.54 as a critical support level for ADA. The last time the price was at this level, it surged over 55%, and a similar rally is expected. Buying pressure could push Cardano's price to $0.84, mirroring the rally seen in April.

Analysts Dan Gambardello and Cheds Trading also noted bullish momentum in ADA as it surged 30% in just three days. The focus is now on the 200-SMA level at $0.75. If bulls maintain the price above this level, it could immediately move to $0.84.

Recently, Analyst Dan Gambardello revealed a "golden cross" chart pattern formation in the weekly charts. This pattern occurs when the 50-week moving average crosses above the 200-week moving average. This coincided with increased ETF approval odds and institutional positioning ahead of potential Federal Reserve policy changes.

Grayscale turned bullish on Cardano, increasing ADA’s weightage to 18.5% in its Smart Contract Platform Fund’s portfolio. As a result, ADA became the third-largest holding after Ethereum (ETH) and Solana (SOL). This indicates that Grayscale has likely turned bullish on Cardano amid recent new projects, upgrades, and technical chart strength.

The Cardano community is eagerly awaiting numerous proposed projects and upgrades that could increase on-chain activity. In particular, the community views Ouroboros Leios, Hydra, and Midnight as strengthening Cardano’s full-stack blockchain offering. Ouroboros Leios upgrade aims to scale up transaction processing speed and efficiency on the Cardano network. Meanwhile, the Hydra Layer 2 upgrade will boost high-speed throughput and low-latency transactions. With these upgrades, Cardano will process millions of transactions per second, signaling strong fundamentals to support a further rally in Cardano's price.

Cardano founder Charles Hoskinson praised the project Reeve by non-profit Cardano Foundation. The project aims to integrate traditional accounting systems with blockchain technology, ensuring transparency, immutability, and enhanced security for financial records. The Reeve project, also known as Ledger on the Blockchain (LOB), is a proposed open-source platform by the Cardano Foundation. It aims to bring financial reporting on-chain on Cardano, ensuring its integrity and verifiability for all stakeholders. Key features offered by the Reeve project include enhanced auditability, strengthened accountability, increased trust, improved efficiency, and modular software architecture. This is likely groundbreaking in financial reporting and auditing, making them simplified, cost-efficient, and tamper-proof data sharing directly on-chain.

At the time of writing, Cardano's price was trading at $0.73, 16% higher than its previous value, paring some earlier gains. The price has surged more than 30% in a week. The 24-hour low and high were $0.629 and $0.772, respectively. The price has climbed above the 50-SMA and 100-SMA levels but slipped below the 200-SMA due to profit booking. The Relative Strength Index (RSI) jumped to 69, signaling potential for further upside.