Grayscale Boosts Cardano Allocation Amidst Crypto Market Volatility

Grayscale Investments, a leading digital asset manager, has made significant adjustments to its diversified crypto holdings. According to the latest portfolio breakdown, Cardano (ADA) now accounts for roughly 20.20% of the fund's total assets, making it the third-largest allocation behind Solana and Ethereum.

This move highlights Grayscale's growing confidence in Cardano's long-term fundamentals at a time when digital assets are facing macro-driven volatility. The broader crypto market is experiencing a downturn following new tariff measures announced by Donald Trump, which has triggered a broad risk-off move.

Despite the institutional tailwind, ADA's technical structure remains fragile. On the daily chart (ADA/USDT), the token is trading around $0.257, down nearly 2% on the session. Price action shows a clear downtrend from January highs near $0.42, followed by a series of lower highs and lower lows into February.

Momentum indicators remain cautious, with the Awesome Oscillator still in negative territory. However, the histogram shows fading bearish momentum as green bars gradually build. Meanwhile, the Balance of Power reading sits below zero, suggesting sellers retain near-term control.