Digital asset manager Grayscale Investments has increased its allocation to Cardano in its diversified crypto holdings, signalling institutional interest in the smart contract platform even as broader market sentiment weakens. The move comes as Bitcoin fell below $65,000 following new tariff measures announced by Donald Trump, dragging the broader crypto market lower. Technically, ADA is trading near $0.257, with resistance at $0.30–$0.31 and key support at $0.24, while momentum indicators remain in bearish territory. According to the latest portfolio breakdown, Cardano (ADA) now accounts for roughly 20.20% of the fund’s holdings, making it the third-largest allocation behind Solana (28.53%) and Ethereum (28.39%).
The adjustment highlights Grayscale’s growing confidence in Cardano’s long-term fundamentals at a time when digital assets are facing macro-driven volatility. The rebalancing comes amid sharp turbulence across crypto markets. Despite the institutional tailwind, ADA’s technical structure remains fragile. After a sharp sell-off in early February that pushed ADA toward the $0.23–$0.24 zone, bulls managed a modest rebound toward the $0.30 level.
However, that recovery stalled, establishing $0.30–$0.31 as immediate resistance. A sustained break above that zone would be needed to shift short-term momentum. On the downside, $0.24 remains key support, with stronger structural support seen near $0.22, the recent swing low. While Grayscale’s increased allocation underscores long-term institutional conviction, ADA’s short-term trajectory will likely depend on whether broader market sentiment stabilizes following Bitcoin’s tariff-driven drop.
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