From allegations of "ghost chain" to a 20% surge - What's happening with Cardano?

Cardano (ADA) is having an extremely impressive start to the new year as the strong growth momentum has returned, despite still facing some skepticism from the market. The question is: will this upward trend sustain long-term, or is it just a temporary reaction to positive news?

Upgrading Leios – A Long-Term Step Forward for Cardano

Most of the attention on Cardano is due to the promising progress of the upcoming Leios upgrade. According to the latest update from IOG on X, the deployment process is progressing smoothly with concrete results.

Source: X Currently, the main proposed improvements are 67% complete, while technical design is at 46%. Other key goals such as demonstrating the ability to process 1,000 transactions per second and deploying testnet are still in the early stages but have clear plans.

Leios is a strategic upgrade extending until 2026, further strengthening investor confidence in ADA’s long-term prospects.

Trust from Major Investment Funds

Confidence in Cardano continues to grow as Grayscale has recently adjusted its investment portfolio.

Source: X Currently, ADA accounts for up to 18.55% of Grayscale’s Smart Contract Fund, second only to Ethereum (ETH) with 29% and Solana (SOL) with 29.55%. This is a significant proportion for a fund focused on long-term smart contract platforms, helping to enhance ADA’s position and reputation in the market.

Is the Price Rally Sustainable?

In the past week, ADA’s price surged, approaching $0.40 after rebounding from the $0.30 zone. However, technical indicators show this area as a strong resistance level, as selling pressure begins to appear. The RSI hovers around the neutral 50, and the CMF has slightly decreased below 0, indicating that capital inflow is slowing after the sharp increase.

Source: TradingView Nonetheless, trading volume remains high, reflecting significant interest from investors and traders.

In summary, ADA’s current upward momentum is quite impressive and well-founded. However, the market remains cautious and is waiting for more signals to determine whether this bullish trend can continue or will temporarily pause in the near future.

Mr. Teacher