Cardano’s Surge: Could ADA Lead the Next Altcoin Cycle Amid Growing Institutional Interest?

• The past week has marked a significant milestone for Cardano [ADA], sparking interest among institutional investors as the cryptocurrency surges.

• ADA’s resurgence is turning heads in the institutional world, with Grayscale leading the charge, positioning itself strategically for future growth.

• This move is likely tied to ADA’s impressive price surge in late 2024, with ADA soaring by over 300%, capturing the attention of seasoned investors and analysts alike.

Exploring Cardano’s recent surge and institutional interest, this article reviews the dynamics of ADA’s price movements and forecasts what lies ahead.

Cardano’s long-term future seems bright

There’s no doubt about it – The past week has been incredibly profitable for Cardano. HODLers who held strong through the tough Q4 are now reaping the rewards with impressive profits. This upward trend has come on the heels of increased institutional activity, with significant figures like Grayscale making notable moves.

What’s even more exciting? ADA’s resurgence is catching the eye of institutional investors. Grayscale’s largest multi-asset fund, the Digital Large Cap Fund (GDLC), has quietly added ADA back to its portfolio.

After a stunning 300% surge in the second half of 2024, pushing ADA to $1.33, this move could be huge for the cryptocurrency’s exposure in the market. Grayscale now holds over $11 million worth of ADA, and that number could grow even more if the GDLC is approved as an exchange-traded fund (ETF) – something Grayscale filed for in October 2024.

With Bitcoin [BTC] and Ethereum [ETH] already seeing massive gains from ETF exposure, adding Cardano to the list would be a breakout moment in the cryptocurrency landscape.

But, what’s next for ADA in the near-term?

The charts don’t lie – Cardano has kicked off the new year as a standout performer. With a 30% surge, Cardano has outpaced its rivals, and its breakout against BTC in the ADA/BTC pair revealed that investors are increasingly eyeing it as a top choice for diversification.

This rally also sent Open Interest (OI) soaring by 11%, hitting an impressive $1.31 billion. To put that into perspective, ADA’s press time OI was even higher than when it hit its yearly high of $1.24 during the “Trump pump.”

Source: Coinglass

However, here’s the catch – to maintain this upward momentum, whales need to keep pushing for accumulation. With the difference between short and long liquidations razor-thin, even a small shift could send Cardano into a downward spiral, squeezing out longs.

Still, with trading volume up by 30% and spot outflows increasing, ADA could easily climb towards $1.50 in the near term. If this trend continues, Cardano could easily lead the next altcoin cycle – especially with Bitcoin dominance seeing a death cross, signaling a shift that could open the door for altcoins to shine.

Conclusion

In summary, Cardano’s recent price surge, bolstered by institutional investment, suggests a promising outlook as it heads into 2025. With increasing trading volume and a favorable macroeconomic landscape for altcoins, investors should remain vigilant as Cardano positions itself for potential leadership in the next altcoin cycle. The journey of ADA is one to watch closely, with significant developments likely on the horizon.