- Grayscale’s Smart Contract Fund now holds 20.2% in Cardano, as a third-largest allocation behind Solana and Ethereum.
- As ADA is trading down over 5% in 24 hours, and 28% down over a month.
Grayscale Smart Contract Fund, an investment vehicle, has shown importance in Cardano crypto as it increased its stake in ADA among its multi-digital asset holdings even during these turbulent market conditions.
The crypto asset manager Grayscale Investments, which manages the smart contract fund, released its portfolio allocation on February 23, which showed a total of six digital asset holdings. In that, Cardano holds 20.20%, which is the third largest asset held by them.
Solana accounts for 28.53%, which stands in the first place, followed very closely by Ethereum, which makes 28.39% of the total allocation. After Cardano, the remaining positions are Hedera, Avalanche, and SUI; each holds less than 9% of the total portfolio.
While writing this article, the whole crypto market itself went down over 3.5%, and the market cap stands at $2.19 trillion. Where Bitcoin is hovering around $63,000, Ethereum is trading at $1,824, followed by the other altcoins, and even the crypto fear and greed index stood at 11 in the extreme fear zone.
Cardano is also caught in the market’s downward momentum, which is trading at $0.2573, down 5.11% in the last 24 hours. Meanwhile, the daily trading volume has increased slightly by around 3%. But, ADA crypto is still down around 8% over the past week and 28% down over a month. Also, altcoin is nearly 91% down from its peak of $3.10.
Cardano Price Analysis
The one-day chart of ADA/USDT shows weakness and is under pressure, persisting with a red candle formation. The price could see the key support at 0.240. If ADA goes deep down, the price might touch $0.235. On the upside, if ADA see reversal, the price could reach the previous consolidation zone at $0.270, and key resistance is seen at the $0.295 – $0.300 range.
While the RSI is sitting at 37, which has not yet reached the oversold territory, still stands in the bearish zone. While the ADA’s Moving Average Convergence and Divergence line is slightly above the signal line, the values are below zero, which suggests the overall asset is still under pressure.
As the pressure is largely tied to broader market conditions, with that background, the significant allocation into Cardano shows that there is increased conviction by Grayscale, which highlights institutional confidence in ADA.
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