Will Cardano Price Rally to $1 as Grayscale Turns Bullish on ADA?

Key Insights:

• Grayscale increased Cardano’s weightage to 18.5% in the Smart Contract Platform Fund, turning bullish on Cardano price.
• Cardano projects and upgrades include Ouroboros Leios upgrade and the Reeve project support a bullish outcome for the network.
• ADA price continued moving upwards after the weekly golden cross pattern formation, eyeing major rally.

Grayscale has turned bullish on Cardano price as it increased ADA allocations in its Smart Contract Platform Fund. This move comes amid increased odds of spot Cardano ETF approval and technical chart strength signaling major bullish signals.

Cardano Becomes 3rd Largest Holding in Grayscale Fund

Grayscale adjusted its Smart Contract Platform Fund’s portfolio, increasing Cardano’s weightage to 18.5% in the fund. As a result, ADA is now the 3rd largest holding after Ethereum (ETH) and Solana (SOL).

Also, the crypto fund manager sold Polkadot (DOT) and existing fund components in proportion to their respective weightings. Hedera (HBAR) was purchased using the cash proceeds.

This indicated that Grayscale has likely turned bullish on Cardano amid recent new projects, upgrades, and technical chart strength.

Recently, Grayscale updated its top 20 crypto list, which includes crypto assets having high potential over the coming quarter. The list excluded Cardano (ADA), but the recent increase in weightage in the Smart Contract fund holds promise.

The Cardano community awaits 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 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.

In an X post on July 9, analytics platform Tap Tools asserted that Cadano will process millions of transactions per second with Hydra and the upcoming Orboros Leios upgrade.

Today, 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, aka 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 are 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.

Cardano Price Begins Major Rally

Cardano price hit the $0.60 level again today. The price has surged nearly 7% in a week, with the price trading $0.596 at the time of writing.

The 24-hour low and high were $0.579 and $0.598, respectively. However, the trading volume has decreased by 11% in the last 24 hours.

Recently, Analyst Dan Gambardello identified a bullish weekly technical indicator for Cardano price as the 50-week moving average crosses above the 200-week moving average. The “golden cross” chart pattern coincided with increased ETF approval odds and institutional positioning ahead of potential Federal Reserve policy changes.

However, the price still trades below the 50-SMA, 100-SMA, and 200-SMA in the daily timeframe at the time of writing. Whereas, the Relative Strength Index (RSI) rises to 49, signaling potential for further upside momentum.

CoinGlass data showed massive buying in the derivatives market. At the time of writing, the total ADA futures open interest jumped 4% to $876.19 million in the last 24 hours. ADA futures OI on Binance, OKX and Bybit climbed more than 5%, 4.80% and 4.60%, respectively. This signals bullish sentiment among derivatives traders.

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