Cardano bulls set eyes on $1 as institutional adoption grows amid Bitcoin integration

• After breaking through the major resistance at $0.74, analysts expect the Cardano price to continue climbing.
• Cardano will have to close above $0.7786 on the weekly chart to confirm a run to $1.
• Some of the factors propelling ADA’s price are the Bitcoin’s integration and inclusion in a Grayscale fund.

Cardano price has surged by over 27% in the past week, breaking through the $0.74 resistance level and setting its sights on the $1 milestone.

After a prolonged period of consolidation, ADA is now poised for a potential rally, driven by growing institutional interest and innovative developments within its ecosystem.

Why is Cardano’s price rising?

With Cardano (ADA) currently at around $0.85 and up 6% today alone, the main question is what is behind the Cardano price surge.

One of the factors behind the ADA price surge is the inclusion of ADA in the Grayscale Digital Large Cap Fund.

Cardano’s inclusion in the Grayscale Digital Large Cap Fund, alongside heavyweights like Bitcoin (BTC) and Ethereum (ETH), is a testament to its growing institutional appeal.

The other factor is the planned integration of Bitcoin into the Cardano ecosystem, enabling Bitcoin staking through a zero-knowledge approach, which could unlock new use cases and attract more users.

In addition, the rise in staking activity on Cardano, with more users locking up their ADA to secure the network and earn rewards, is creating scarcity in the market, which could spur further uptick for ADA.

Shifting to technical analysis, ADA has not only broken out of a bullish flag pattern but also formed an inverse head and shoulders, both of which are classic bullish signals.

The derivatives market has also seen a significant increase in open interest, surpassing $1.01 billion, and the recent short squeeze has propelled the price higher.

Additionally, according to DeFi Llama, Cardano’s total value locked (TVL) has increased to $502 million, up from $320 million last month, indicating growing adoption despite some ecosystem challenges.

However, Cardano still faces hurdles, such as relatively low DeFi activity and a small stablecoin presence compared to competitors like Ethereum and Solana.

Cardano price analysis: Can ADA soar above $1?

Currently trading at above $0.85, the technical setup is overwhelmingly bullish, with the price closing above key moving averages and the MACD indicator showing a bullish crossover.

Price targets vary among analysts, but the consensus points to a potential rally toward $1.20 in the near term, with longer-term projections reaching up to $1.79.

In the long term, a weekly close above $0.7786 would confirm the breakout and set the stage for a push toward $0.85, and subsequently, the psychological $1 level.

On the flip side, if the price fails to hold above $0.74, it could trigger a correction, with the next support level at $0.62.

While the technicals are strong, the success of ADA’s price rally will also depend on the network’s ability to attract more developers and applications to boost its ecosystem.

The broader crypto market’s performance, especially that of Bitcoin and Ethereum, will be instrumental in determining whether Cardano can sustain its upward trajectory.

For now, the momentum is with the bulls, and if Cardano can capitalise on its recent developments and market conditions, reaching $1 and beyond is within the realm of possibility.

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