Assessing Cardano’s Potential to Break $1.50 and Dominate the Altcoin Market

With the close of 2024 at $0.80 and the current trading price at $1.14, Cardano [ADA] has captured the interest of investors, particularly with the ADA/BTC pair showing positive signs. As alternative cryptocurrencies vie for an influx of funds and Bitcoin approaches a risky territory, could Cardano emerge as the dominant player in the upcoming altcoin cycle?

The Promising Long-Term Outlook for Cardano

Undoubtedly, the past week has been highly lucrative for Cardano. Those who held onto their ADA tokens during the challenging Q4 period are now reaping significant profits.

What adds to the excitement is the attention Cardano is receiving from institutional investors. Grayscale, a major multi-asset fund manager, has discreetly included ADA in its Digital Large Cap Fund (GDLC).

Following a remarkable 300% increase in the latter half of 2024, driving ADA to $1.33, this development could be monumental.

Grayscale currently holds more than $11 million worth of ADA, and this figure could surge further if the GDLC is sanctioned as an exchange-traded fund (ETF) – a move Grayscale sought approval for in October 2024.

Given that Bitcoin [BTC] and Ethereum [ETH] have experienced substantial growth due to ETF exposure, the addition of Cardano to that list would mark a significant milestone.

What Lies Ahead for ADA in the Short Term?

The data speaks volumes – Cardano has kicked off the new year as a standout performer. With a 30% rise, Cardano has outperformed its competitors, and the breakout against BTC in the ADA/BTC pair indicates growing interest from investors looking to diversify.

This surge has led to a notable 11% increase in Open Interest (OI), reaching an impressive $1.31 billion. To contextualize, ADA’s current OI is higher than when it reached its annual peak of $1.24 during the “Trump pump.”

Nonetheless, there’s a catch – for this upward trend to be sustained, whales must continue accumulating.

Given the narrow gap between short and long liquidations, even a slight shift could trigger a downturn for Cardano, forcing out long positions.

Nevertheless, with a 30% surge in trading volume and growing spot outflows, there is a strong possibility for ADA to climb above $1.50 in the short term.

If this trend persists, Cardano could emerge as a leader in the next altcoin cycle – particularly as Bitcoin dominance displays a death cross, hinting at a potential shift that could create opportunities for alternative cryptocurrencies to thrive.