Key Insights
- Cardano has surged over 40% from its June low, forming a bullish rounding bottom pattern.
- ADA’s price could reach $1 if it breaks the $0.74 resistance and sustains volume.
- ETF approval odds for Cardano have jumped to 84%, providing a new price catalyst.
Cardano has become one of the market’s most established altcoins. The cryptocurrency is again making headlines this time, with a price near $0.70 and building momentum toward $1.
Bullish technical indicators and strong investor sentiment are fueling ADA’s recent breakout. The increasing chances of a U.S. spot ETF approval also make waves in the Cardano ETF news cycle.
What’s fueling this rally, and what do the ETF odds say? Also, why is ADA one of the most closely watched tokens of the year?
Cardano ETF News: Approval Odds Hit 84%
Another fuel source for Cardano’s rally is the regulatory approval of a spot Cardano ETF. Polymarket shows a sharp spike in ETF approval odds, rising from 42% in June to 84% by mid-July. This surge adds fuel to the growing speculation around the Cardano ETF news.
This development is a big deal. ETFs make it easier for institutional and retail investors to gain exposure to crypto without having to hold digital assets directly. After the Bitcoin and Ethereum ETF approvals last year, the odds show that Cardano could be next in line.
Approval of an ADA ETF would enhance market legitimacy and attract institutional attention. These shifts could lead to strong capital inflows and rising prices, major highlights in the evolving Cardano ETF news.
ADA’s Technical Breakout
Per Cardano price prediction, ADA is on the verge of a breakout from a bull-flag formation. The cryptocurrency rallied 311% between late November and December last year.
It surged from a low of $0.32 to $1.33. However, soon after this price increase, the cryptocurrency started to consolidate. It formed the flag section of the bull-flag formation.
Cardano has surged by over 40% from the bottom of the flag to the resistance near $0.74. This price point coincides with the top of the flag formation, and a breakout towards $1 could be inbound.
Traders now believe breaking through this resistance and the 200-day SMA could unleash a further rally. The price target would be around $1.06 if such a rally materialized. This would represent the current pattern’s depth.
If history is any guide, ADA could repeat its November performance. Then, a similar setup led to the aforementioned 311% surge.
However, for that to happen, one thing must remain strong. Buy-side volume has to strengthen, and the breakout could fizzle without strong demand.
Network Activity and Whale Accumulation Show Strength
Price action & Cardano ETF news alone don’t tell the whole story. Underneath the surface, Cardano’s fundamentals are strengthening. According to DeFiLlama, Cardano’s total value locked (TVL) has risen by over $100 million since late June.
This shows a surge in DeFi activity on the network. It also shows that the meme coin projects and smaller dApps contribute to the uptick.
Meanwhile, open interest in ADA futures has climbed past $2.14 billion. It is another indication that market participants expect more volatility.
ADA’s trading volume has jumped by over 50% in a single day recently. This added more evidence that momentum is building.
Resistance Levels and Risks
While the outlook is promising, a few red flags still wave in the wind. For example, ADA’s Relative Strength Index (RSI) is approaching overbought territory. Historically, RSI levels above 70 indicate that a pullback is likely.
However, ADA has pushed past RSI levels of 85 in previous bull cycles before correcting. This indicates that some bullish wiggle room remains.
Investors should also watch the $0.90 to $0.92 resistance zone closely. This is the final hurdle before ADA can reclaim $1. A failure to break above this price level convincingly could result in consolidation, or worse, a reversal.
