Rose 6 times more than Bitcoin… What's the secret behind Cardano (ADA)'s surge?

▲ Cardano (ADA)/AI-generated image ©

Cardano (ADA) has shown a steep upward trend, outperforming Bitcoin (BTC), driven by expectations for major network upgrades and aggressive accumulation by large whale investors. This surge was further amplified by a massive short squeeze (buying pressure resulting from the liquidation or covering of short positions), with the market now focusing on whether key resistance levels will be broken in the future.

According to cryptocurrency market data aggregator CoinMarketCap on July 3 (local time), the ADA price surged by 11.57% over the past 24 hours, reaching $0.17914. This significantly surpassed Bitcoin's return of just 1.79% during the same period, demonstrating ADA's unique presence in the recent cryptocurrency market.

The most powerful driving force behind this rise is the impending Protocol Version 11, also known as the van Rossem hardfork upgrade. Global major exchanges like Binance and Coinbase are reportedly already technically prepared for the operation, awaiting only final approval from the Constitutional Committee. Once this upgrade is completed, smart contract costs are expected to decrease, and zero-knowledge (ZK) cryptography technology will be introduced, significantly enhancing network utility.

Movements in the derivatives market and aggressive buying by whales also fueled the surge. During the price increase, short positions worth $857,140 were forcibly liquidated, while long position liquidations amounted to only $158,490, indicating strong buying pressure. Furthermore, large investors, referred to as whales, have been actively accumulating over 150 million ADA since late June, intensifying the supply shortage as circulating supply on exchanges decreased.

While short-term market outlooks are somewhat mixed, momentum remains strong. The current Relative Strength Index (RSI) is at 75.85, entering a technically overbought zone. However, if the 20-day Exponential Moving Average (EMA) support level of $0.17 is firmly maintained, there is a high probability of an attempt to further rise to the 50-day EMA resistance level of $0.1858. Conversely, if profit-taking pressure pushes the price down from current levels, it could correct to a support zone between $0.14 and $0.15.

In conclusion, this rally is interpreted not as a mere speculative trend but as a result of actual technological upgrades combined with improved supply and demand. Experts believe that with news of the Constitutional Committee's final approval, whether ADA can decisively break through the $0.1858 resistance level with high trading volume will be a watershed moment for a sustained trend reversal.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*