Cardano (ADA) experienced a 3% drop over the weekend, trading at $0.75 amid broader crypto market bearishness. Despite this, several factors suggest a potential upward trajectory, including a strong technical setup and increasing likelihood of a SEC-approved Cardano ETF.
Key Drivers Behind ADA's Potential Rally
1. Technical Breakout Signals
- ADA is testing resistance at the upper trendline of a descending triangle pattern, a bullish indicator if breached.
- A breakout above the 50% Fibonacci level ($0.91) could trigger a **75% surge** to $1.32.
- Weekly chart confirmation of this pattern would signal a long-term bullish trend.
👉 Why Cardano's technical analysis suggests a major rally
2. Rising Cardano ETF Approval Odds
- Polymarket data shows a 63% chance of SEC approving a spot Cardano ETF in 2024, up from 56% recently.
- Grayscale’s existing filing (acknowledged by SEC in February) and 21Shares’ successful ADA ETP ($72M AUM) highlight institutional interest.
Market Indicators to Watch
- DMI Indicator: +DI (blue) trending above -DI (red) suggests bullish momentum, though a declining ADX line indicates broader market weakness.
- Institutional Adoption: ETF approval could mirror Bitcoin’s Wall Street success, fueling ADA demand.
FAQ Section
Q: How likely is a 75% ADA price rally?
A: Highly probable if ADA breaks the descending triangle pattern and sustains above $0.91 resistance.
Q: What’s the probability of a Cardano ETF approval?
A: Current odds stand at 63%, per Polymarket data.
Q: How would an ETF impact ADA’s price?
A: Approval could drive significant institutional inflows, potentially pushing ADA past $1.
Conclusion
With a technical breakout imminent and ETF optimism growing, Cardano’s $1.32 target remains plausible. Institutional interest and bullish patterns position ADA for a potential 75% rally, despite short-term market dips.