- Cardano could surge by 70% due to whale accumulation, potential ADA ETF approval, and bullish technical patterns
- These factors combined suggest the price may reach the key resistance level of $1.176 in the near future.
Cardano (ADA) has experienced a slight pullback recently, dropping to a low of $0.70 after reaching a year-to-date high of $0.747. However, there are compelling reasons why the price of Cardano could surge by 70% in the coming weeks, potentially retesting its key resistance level at $1.176. Here are the top three factors contributing to this optimistic outlook.
1. Whale Accumulation Sparks Bullish Sentiment
One of the most significant indicators of Cardano’s potential price surge is the growing accumulation by whales. Santiment data shows addresses holding 10 million to 100 million ADA now control 35.5% of the supply. Additionally, ADA holders with between 1 million and 10 million coins have increased to 15.83%. The uptick in whale activity suggests large investors are positioning for gains, typically signaling bullish momentum and upward price pressure.
2. The Growing Likelihood of an ADA ETF Approval
Another major catalyst for Cardano’s price movement is the increasing probability of an ADA exchange-traded fund (ETF) being approved. With the SEC appointing Paul Atkins as the chair, the odds of an ADA ETF approval have risen to 55%. This could be a game-changer for the ADA market. If approved, it would enable investors to gain exposure to Cardano through traditional financial markets while potentially earning staking rewards. This would open the door for a broader range of institutional investors, potentially driving up demand and pushing prices higher.
3. Technical Indicators Suggest a Bullish Breakout
From a technical analysis perspective, Cardano has formed a double-bottom pattern at $0.510, which is a classic bullish signal. This formation indicates that there is strong support at this level, with short-sellers becoming hesitant to push the price lower. The neckline of this pattern lies at $1.176, which represents Cardano’s highest price point in recent months. Additionally, ADA is hovering at the 61.8% Fibonacci retracement level, known as the “golden ratio,” which often serves as a strong reversal point. Combined with a small bullish flag pattern, these technical indicators suggest that Cardano is poised for a breakout in the near future, potentially pushing the price up by 70% toward the $1.176 resistance level.
With whales actively accumulating ADA, a rising likelihood of an ETF approval, and a bullish technical setup, Cardano’s price could see a significant rally in the coming weeks. If these factors continue to play out in Cardano’s favor, the coin might soon retest the $1.176 level, representing a potential surge of up to 70%. Investors and traders will be watching closely as these developments unfold.
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