Cardano Investment Inflow Surges Following Market Crash
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Despite falling with the market in the recent crash, Cardano (ADA) appears to be faring better than other large-cap cryptocurrencies. The fifth-largest cryptocurrency is up by 12% this morning.
The recent market crash got primarily triggered by widespread concerns over the environmental impact of Bitcoin, which was catalyzed by Elon Musk’s reprimand two weeks ago. According to a report by CoinShares, Cardano-based investment products benefited from this narrative.
The report revealed that Cardano witnessed its highest investment inflows running up to $10 million last week in response to “investors actively choosing proof of stake coins based on environmental considerations.”
Bitcoin, on the other hand, suffered the most investment outflows with $110.9 million last week. Regardless, the benchmark cryptocurrency still has $4.1 million in year-to-date (YTD) positive flows with 31,597 in assets under management.
Ripple, Polkadot, Litecoin, and Stellar also recorded positive inflows last week, with Polkadot coming in second place behind ADA with $5.5 million in investment inflows.
Cardano is the number five cryptocurrency in YTD positive inflows with $24 million behind Bitcoin, Ethereum, Polkadot, and Ripple.
The CoinShares Report noted that:
“Digital asset investment products saw net outflows for the second consecutive week totaling US$97m, another new record for outflows. (…) it represents a net change in sentiment following increasing regulatory scrutiny and concerns over Bitcoin’s environmental credentials.”
Key Cardano Levels to Watch — May 26
Following prolonged consolidation between $1.61 and $1.46 yesterday, Cardano appears to have broken into a bull rally as the market regains bullish traction. The cryptocurrency faces the immediate task of clearing the $1.83 resistance before proceeding to the $2 psychological resistance.
While we expect the coming hours to be significantly bullish for ADA, we could see some minor dips along the way. However, the trendline should serve as a launchpad following any decline in the coming hours.
Meanwhile, our resistance levels are $1.8300, $1.9500, and $2.0000, and our support levels are $1.7000, $1.5467, and $1.5000.
Total Market Capitalization: $1.62 trillion
Cardano Market Capitalization: $49.6 billion
Cardano Dominance: 3%
Market Rank: #5
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