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Cardano price skyrockets with highest allocation in Grayscale's new smart contract fund

  • Cardano price has posted double-digit gains overnight as the altcoin breaks out of a downtrend. 
  • Grayscale announced its Smart Contract Platform Ex-Ethereum fund yesterday, giving Cardano the highest allocation. 
  • Analysts believe the recent uptrend is a combination of a technical bounce from oversold levels and a bullish long-term outlook. 

Cardano price has witnessed a major boost after months of downtrend. Analysts have a bullish outlook on the altcoin, predicting a continuation of Cardano's uptrend. 

Also read: Gold Price Forecast: Challenging weekly highs, now what?

Cardano price breaks into uptrend, posts 13% gains overnight

Cardano price started 2022 at $1.50, and analysts consider $1 a key psychological level for the altcoin. In its price rally overnight, Cardano crossed the $1 level and continued its uptrend. Analysts have predicted a bearish outlook on the altcoin but expect Cardano price to continue its rally. 

On March 23, 2022, Grayscale announced the launch of its new fund, the Smart Contract Platform Ex-Ethereum Fund. The fund is one of the first securities solely invested in and deriving value from the price of native tokens on smart contract platforms. Cardano has the highest allocation in Grayscale's new fund. 

Another key development that fueled a bullish narrative among investors is the recent Cardano network upgrade that increased Plutus' per block script memory units to 62 million. Cardano network upgrades have historically influenced the altcoin's price positively, fueling demand for the altcoin across exchanges. 

Analysts have evaluated the Cardano price trend and predicted ADA would preserve its uptrend after crossing the key psychological barrier of $1. @Phoenix_Ash3s, a renowned crypto analyst and trader, believes Cardano's price structure favors the bulls. 

FXStreet analysts believe Cardano has triggered a bear trap, and the altcoin could hit $1.36 in the ongoing uptrend. Analysts expect to see selling pressure on Cardano near the $0.96 level; however, it may not last, depending on the momentum. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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