Cardano has broken from a downtrend and gained roughly 38% in a week
The rise in value can be attributed to ADA/USDT being oversold in the daily chart
Coinbase announced that it now supports staking of Cardano
Grayscale also launched a smart contract platform fund with Cardano allocated a weighted value 24.63%
The digital asset of Cardano (ADA) has broken out of a downtrend and gained by approximately 38% in the last seven days. According to Coinmarketcap, Cardano (ADA) was valued at roughly $0.85 seven days ago and is currently trading at $1.17.
What the Daily ADA/USDT Chart Says
A brief look at the daily ADA/USDT chart reveals that Cardano has broken out of a massive downtrend that began in September 2021 when the digital asset was valued at $3.101.
Also from the chart, it can be revealed that Cardano hit a local low of $0.776 on the 14th of this month and a local peak of $1.177 earlier today. This translates to an incredible 51.6% increment in a ten-day time period.
However, Cardano’s bullish energy could experience some exhaustion as the daily MFI and RSI are currently at overbought territory of 88 and 77 respectively. Furthermore, the 100-day moving average (yellow) could provide some resistance at current price levels.
Coinbase to Offer Staking of Cardano (ADA)
Nevertheless, Cardano’s price could continue to benefit from Coinbase announcing that it now supports the staking of ADA. The announcement by the crypto exchange was made earlier today and is probably the reason why Cardano has a good green daily candle.
Coinbase is offering an annual return of 3.75% APY for Cardano staking. To start earning rewards users of Coinbase can deposit or purchase Cardano, and then proceed to hold their ADA on the platform. Those who wish to stake their Cardano will have to complete a 20 to 25 holding period after which they will start receiving rewards every 5 to 7 days.
Grayscale Includes Cardano in a Smart Contract Platform Fund
Also worth mentioning is that earlier this week, Grayscale announced the launch of its Smart Contract Platform Fund. The new product will provide investors with exposure to several leading smart contract platforms through a weighted portfolio with the following assets.
Cardano (ADA) -24.63%
Solana (SOL) – 24.27%
Avalanche (AVAX) – 16.96%
Polkadot (DOT) – 16.16%
Polygon (MATIC) – 9.65%
Algorand (ALGO) – 4.27%
Stellar (XLM) – 4.06%
Cardano has been allocated the highest weighted value on the fund and could be a contributing factor to the impressive price increment of ADA in the last few days.