From ‘ghost chain’ claims to 20% surge – What’s happening to Cardano?

ambcryptoPublished on 2026-01-09Last updated on 2026-01-09

Abstract

Cardano (ADA) is experiencing a significant surge, rising nearly 20% amid renewed optimism and notable developments. The upcoming Leios upgrade, a long-term initiative extending into 2026, is progressing well, with the main improvement proposal 67% complete and technical design at 46%. Additionally, Grayscale’s portfolio rebalance has boosted ADA’s credibility, as it at 18.55% of the Grayscale Smart Contract Fund, behind only Ethereum and Solana. Despite the strong rally pushing ADA close to $0.40, selling pressure has emerged near this level. The RSI is neutral around 50, and the CMF has dipped slightly below zero, indicating slowing capital inflows. However, trading volume remains healthy, suggesting continued trader interest. The market appears cautious about whether the upward momentum will sustain or stall. Overall, Cardano’s rally is supported by tangible network progress, but further price movement will depend on continued follow-through.

Cardano’s [ADA] is having a great new year! Pace has returned, but not without the usual skepticism. Will this surge be a prolonged stretch, or is it just an impulse push to good news?

Leios upgrade takes shape

The current buzz around Cardano may have to do with progress on its upcoming Leios upgrade. A recent post on X showing IOG’s tracker proves that the work is moving forward with measurable success.

Source: X

The main improvement proposal is already 67% complete, while the technical design stands at 46%. Other goals, like proving 1,000 transactions per second and rolling out a testnet, are still in early stages, but seem clearly planned.

Leios is a long-term upgrade stretching into 2026. For ADA holders, this helps explain the firm belief.

A strong vote of confidence

Another boost for Cardano comes from Grayscale’s latest portfolio rebalance.

Source: X

ADA now makes up 18.55% of the Grayscale Smart Contract Fund, placing it just behind Ethereum [ETH] at 29% and Solana [SOL] at 29.55%. That’s notable, especially in a fund focused on long-term smart contract platforms.

For ADA, this extra exposure increases credibility greatly.

Has the surge paused?

ADA’s price rally over the last week has been strong, with the token close to the $0.40 level after a move up from the mid-$0.30s.

However, the chart showed that this area was a heavy zone of interest at press time, where selling pressure had started to appear. The RSI was around the neutral 50, and the CMF had slipped slightly below zero.

This means that capital inflows were slowing after the surge.

Source: TradingView

Volume was healthy, which means traders were still active.

ADA’s jump looks solid. However, it seems like the market is still on the fence about whether this move can extend or stall for a bit.

Final Thoughts

  • Cardano’s rally is supported by real network progress.
  • With price slowing near $0.40, ADA now needs follow-through.
Next: ‘Increasing Ethereum’s bandwidth is safer’ – Vitalik Buterin explains why
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Related Questions

QWhat is the main reason behind Cardano's recent price surge according to the article?

AThe main reason is the progress on Cardano's upcoming Leios upgrade, with the main improvement proposal 67% complete and technical design at 46%, which has boosted investor confidence.

QHow did Grayscale's portfolio rebalance impact Cardano's position?

AGrayscale's rebalance increased ADA's allocation to 18.55% in its Smart Contract Fund, placing it just behind Ethereum and Solana, significantly boosting its credibility and exposure.

QAt what price level did ADA face selling pressure during its rally?

AADA faced selling pressure near the $0.40 level, which was identified as a heavy zone of interest where the rally showed signs of stalling.

QWhat technical indicators suggested a slowdown in ADA's momentum?

AThe RSI was around the neutral 50 level, and the CMF (Chaikin Money Flow) slipped slightly below zero, indicating that capital inflows were slowing after the surge.

QWhat are the key factors supporting Cardano's rally as summarized in the article?

AThe rally is supported by real network progress like the Leios upgrade and increased institutional exposure through Grayscale's fund, though it needs follow-through momentum to sustain gains above $0.40.

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