Cardano (ADA) has re-entered the limelight as 2026 gets underway, driven by on-chain development signals and fresh institutional attention — but traders remain cautious about how durable the rally will be. Why developers are bullish IOG’s Leios upgrade is a major factor behind renewed optimism. A recent update on X shows progress on the project’s roadmap: the main improvement proposal (MIP) is about 67% complete and the technical design is roughly 46% finished. Ambitious milestones such as proving 1,000 transactions per second and launching a public testnet are still in earlier phases, but they’re clearly scoped and scheduled. Leios is framed as a multi-year program that stretches into 2026, giving ADA holders a tangible reason to believe in longer-term protocol gains. (Source: IOG on X) Institutional flows add credibility Cardano also benefited from Grayscale’s latest portfolio rebalance. ADA now represents 18.55% of the Grayscale Smart Contract Fund — putting it just behind Ethereum (≈29%) and Solana (≈29.55%). In a fund focused on long-term smart contract platforms, that allocation raises Cardano’s institutional profile and may attract more strategic capital going forward. Price action and technicals ADA posted a strong weekly gain, pushing up from the mid-$0.30s toward the $0.40 area. That $0.40 zone, however, showed resistance as selling pressure emerged. Key short-term indicators suggested momentum was moderating: the RSI hovered near a neutral 50 and the Chaikin Money Flow (CMF) slipped slightly below zero, implying that capital inflows had cooled despite healthy trading volume. In short, the move looks legitimate, but the market is still weighing whether this is the start of a sustained advance or a short-term impulse. What to watch next - Leios milestone updates and any public testnet launches — continued, measurable progress will support longer-term upside. - Further institutional flows or fund rebalances that increase ADA’s weighting. - Price behavior around the $0.40 zone and whether volume-backed breakouts follow. Disclosure: This article is informational and not investment advice. Cryptocurrency trading is high-risk; do your own research before making any decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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