Journalist
Posted:
- Cardano’s future looks bullish as institutional interest rises, pointing to a huge capital inflow.
- Analyst predicted ADA’s potential price breakout based on historical patterns and recent developments.
Cardano [ADA] has caught the attention of investors following the announcement of Grayscale’s file for Cardano Spot ETF on the 11th of February.
As of this writing, ADA was trading at $0.7990 with its trading volume rising by 3.6% in the last 24 hours and 12% in the previous week, according to CoinMarketCap.
Whale accumulation & Spot ETF interest
Grayscale has recently filed for Cardano ETF, with the NYSE showing a rising interest in institutions, suggesting that Cardano could anticipate billions in liquidity inflow in the next few months.
Bloomberg reported that Cardano ETFs now have a 60% odd of being approved, while investors eye the 27th of March as the first deadline for SEC approval, denial, or extension.
Following Cardano’s price drop in December last year, large-scale investors have slowly accumulated ADA despite price consolidation, hoping to see history repeat itself.
Technical analysis & historical pattern
Looking at the daily chart, Cardano has been on a bullish momentum over the past week by making higher highs, suggesting the formation of an uptrend.
The current price action resembles the altcoin’s 2019-2020 accumulation phase before the 2021 bull run.
TapTools shared this analysis on X (formerly Twitter), suggesting that the accumulation period of ADA since 2022 was similar to the previous bull run on the weekly chart.
Source: TapTools/X
Cardano has been trading in the upper range of this accumulation zone, signalling a potential breakout towards the $1 key psychological level.
A look into on-chain insights
Cardano’s RSI has risen from 44 to 55, based on CryptoWaves data, indicating that traders were actively buying ADA and that the altcoin was not yet overbought at press time.
According to Santiment data, the previous week saw ADA’s active wallet addresses gradually rise as trading volume increased as well, suggesting a growing network activity.
Source: Santiment
The market was predominantly bullish, based on exchange signals data, showing that more investors had started to believe in Cardano’s future.
Source: IntoTheBlock
Cardano’s Plomin hard fork on decentralized governance gave power to its token HODLers boosting its projected growth earlier this month.
The anticipated spot ETF approvals, historical patterns, and the Plomin hard fork suggest a potential price breakout above the $1 key psychological level and the eventual bull rally targeting the $3 key resistance level.
These factors raise the chances of Cardano’s bull rally from moderate to high in the next few weeks.
