Cardano (ADA) Defies Crypto Slump with 11% Weekly Gain – Can It Hit $1 Soon?

The crypto market continues to struggle, but Cardano (ADA) stands out with its resilience. While the total market cap dropped 4.5% in the past 24 hours, settling at $3.26 trillion, ADA surged over 11% this week. As of February 12, 2024, during the early European session, it traded at $0.76.

Many investors wonder what’s driving this unexpected momentum and whether ADA will soon break past $1. Understanding the forces behind this surge can help predict the coin’s next move.

Why Cardano (ADA) Is Outperforming the Market

Cardano’s fully diluted valuation (FDV) has soared to $34.4 billion, supported by a 24-hour trading volume of $1.4 billion. Unlike most altcoins struggling under bearish pressure, ADA has captured strong investor interest. Institutional and whale investors continue to accumulate ADA, showing confidence in its long-term value.

Whale Investors Fuel ADA’s Growth

On-chain data from Santiment shows that whales—holders with at least 1 million ADA—have steadily increased their holdings. Since November 2023, they have acquired 1.41 billion ADA, which represents 2.35% of the total supply. This accumulation suggests that large investors see Cardano as undervalued and poised for growth.

The consistent buying pressure from whales has provided strong support for ADA’s price. As a result, smaller investors have gained confidence, further fueling demand. Meanwhile, institutional interest continues to rise, signaling potential for broader adoption.

Grayscale’s Spot ADA ETF Filing Could Be a Game-Changer

Excitement around ADA increased after Grayscale Investments became the first firm to file for a spot ADA ETF with the US SEC. If approved, this ETF could bring massive liquidity to Cardano, similar to how Bitcoin ETFs have influenced BTC’s price. Increased institutional adoption would likely drive ADA’s value even higher.

The possibility of an ETF approval has already attracted investor speculation. Many believe that Cardano’s strong fundamentals and expanding ecosystem make it an ideal candidate for institutional exposure. As regulatory clarity improves, ADA’s price could see a major breakout.

ADA Price Outlook: Can It Break Key Resistance?

ADA has struggled to break past $1.1 since November 2024. After a temporary correction, it now hovers between $0.68 and $0.76, a critical support zone. Market analysts suggest that a decisive move above $0.76 could push ADA toward the $1 resistance level.

If Cardano sustains its momentum and surpasses $1.1, it could signal the beginning of a long-term bullish trend. However, if ADA fails to hold above $0.68, another pullback may occur before the next leg up.

Is Now the Right Time to Buy ADA?

With whale accumulation, rising institutional interest, and a potential ETF catalyst, ADA looks strong. Its technical indicators suggest an imminent breakout, making it an attractive opportunity for investors.

Many traders view current price levels as a buying opportunity before a significant rally. However, investors should monitor support and resistance levels closely. Market sentiment, Bitcoin’s performance, and regulatory decisions will also influence ADA’s future trajectory.

In conclusion, ADA’s strong fundamentals and growing adoption suggest long-term potential. If whales and institutions continue accumulating, the price could break past $1 soon. Keeping an eye on key support and resistance levels will help traders make informed decisions.