Cardano (ADA) Sees 500% Surge in Inflows Amid Renewed Altcoin Momentum

Cardano (ADA) is back in the spotlight as investor confidence returns to the altcoin market. According to the latest CoinShares report, digital asset investment products saw $226 million in inflows last week, signaling cautious optimism. Notably, altcoins experienced $33 million in inflows after four weeks of collective outflows totaling $1.7 billion.

Cardano led the charge with a 500% week-over-week increase in inflows. The previous week recorded just $0.1 million, while the latest figures show $0.6 million flowing into ADA. This surge reflects a broader trend of funds moving back into altcoins, suggesting a potential market recovery.

Despite the inflow momentum, ADA’s price has struggled. At the time of writing, Cardano is trading at $0.657, down 1.94% in the last 24 hours and 11% over the past week. The token has faced four consecutive days of losses since March 27, dipping to a low of $0.6296.

Market sentiment remains mixed as macroeconomic factors weigh on investor outlook. CoinShares noted $74 million in minor outflows on Friday, likely due to stronger-than-expected U.S. core PCE data, which could prompt continued hawkishness from the Federal Reserve.

Cardano now approaches a key psychological support level at $0.60, with deeper support between $0.5794 and $0.5197. On the upside, if ADA reclaims the 200-day SMA at $0.726 and surpasses the 50-day SMA at $0.753, a rally toward $0.84 and potentially $1.02 could follow. Conversely, a dip to the $0.50 range may attract buyers eyeing a value entry.

As investor attention shifts back to altcoins, Cardano’s performance in the coming weeks will be crucial in signaling a broader trend reversal.