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Highlights
- ADA price eyes a 75% rally to the upside after testing resistance at the upper trendline of a descending triangle.
- Besides a bullish technical outlook, the increased odds of a spot Cardano ETF approval will also fuel a rebound after the recent dip.
- If a spot Cardano ETF is approved by the SEC, it will aid massive gains for the altcoin.
The crypto market faces a bearish weekend, and Cardano (ADA) has not been spared after a 3% drop to trade at $0.75. ADA price is also losing its footing after dropping in market cap ranking to the ninth position.
Despite the bearish outlook, there are distinct reasons why ADA may recover to the upside and possibly reach higher levels. These include a strong technical outlook and higher odds that the SEC will approve a spot Cardano ETF.
ADA Price Gears for a 75% Rally
The key reason behind a bullish Cardano price forecast is a bullish technical outlook as it tests resistance at the upper trendline of a descending triangle pattern. ADA has been testing a breakout from this resistance line for the past two weeks. If demand rises and Cardano overcomes resistance at the 50% Fibonacci level of $0.91, it will fuel a 75% run to the $1.32 price.
Breaking out of the descending triangle pattern on a weekly chart will also confirm that the long-term trend is about to become bullish.
The DMI indicator also shows the possibility of an upward move for ADA’s price as the +DI indicator (blue) tips north while the -DI indicator (red) tips south. As long as the +DI is trending above the -DI, the momentum will remain bullish. However, the ADX line is dropping, showing that the broader trend is bearish, which may hamper Cardano’s price rally.
Cardano ETF Odds Reach 63%
The other bullish factor driving a bullish momentum towards ADA price is the higher odds of a Cardano exchange-traded fund (ETF) approval. Data from the Polymarket shows there is currently a 63% chance that the SEC will approve this product this year, showing optimism in the Cardano community.
In the last one day, Cardano’s ETF approval bets are up from 56% to 63%, showing that more investors anticipate the product to launch soon.
So far, only Grayscale has a filing with the SEC for a spot Cardano ETF, and the commission acknowledged the product in February. It is important to note that Grayscale was instrumental in the approval of the first spot BTC ETF in the US.
Swiss-based asset manager 21Shares also offers an ADA ETP that has amassed more than $72M in assets under management. The product’s success highlights high institutional interest towards Cardano, which is bullish for ADA price.
With the higher odds of Cardano joining Bitcoin and Ethereum on Wall Street, it points towards a bullish ADA price outlook as investors anticipate the altcoin will continue to rally. Furthermore, the breakout from a descending triangle pattern indicates that a 75% rally is on the way, and this may fuel the upward trend.
Frequently Asked Questions (FAQs)
1. Can ADA price rally 75% despite crypto market dips?
2. Will the SEC approve a spot Cardano ETF?
3. How will a spot Cardano ETF impact ADA price?
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