Cardano’s recent price surge has sparked hope among investors that the cryptocurrency may be on the path to breaking above $1. After weeks of consolidation, ADA surged 10% in a single day, inching closer to this key psychological level.
The rally comes at a time when most altcoins have posted double-digit gains, but Cardano’s trajectory diverged from Bitcoin’s in early December, indicating a possible disconnect from the broader market rally. The lack of fresh capital and short-selling pressure had left ADA in a slump.
However, with the new year bringing fresh investment and diversification into high-caps, investors are piling on, leading to a significant short squeeze worth $107 million. This has triggered a bullish ripple effect across the board, including Cardano’s recent price surge.
Breaking through $1 is crucial for Cardano, as it marks the trigger for Fear of Missing Out (FOMO) and draws fresh capital into the asset. However, holding $1 remains a challenge for Cardano, which struggled with this in Q4 2023. Despite a recent 10% jump, the cryptocurrency’s ability to sustain the rally is uncertain.
The next few days will be crucial in determining Cardano’s fate. If Bitcoin stays moderately active, investors may funnel capital into ADA. However, the real test will be whether whales can break $1 and hold it, otherwise the short squeeze could quickly unravel, sending ADA back into the slump.
Source: https://ambcrypto.com/cardanos-10-jump-sparks-hope-but-can-ada-break-above-1