Cardano Price Outlook As ETF Approval Odds Decline- Will DeFi Push Take ADA Past $5?

Cardano price is pulling back today, August 6, as the entire crypto market tumbles. However, this drop has not changed the sentiment of some analysts regarding how it might perform in the future. One says that ADA will not only recover above $1, but the price may reach $5. Meanwhile, the odds that the SEC is going to approve a spot Cardano ETF have plunged.

Cardano Price Targets $5 as Analyst Spots Bullish Pattern

Cardano trades at $0.72 with a 2.35% drop in 24 hours. It has created a falling wedge comprised of higher lows and lower lows. However, the support line drops at a slower angle than the upper resistance. This is a sign that while sellers may be active, they are losing strength.

Analyst Crypto Front identifies this setup, saying that it has not only been formed, but also broken. He said that after Cardano price moved from the resistance line, it is coming back here again. What this means is that the falling wedge resistance is becoming support.

When the price tips north from this pattern, it is a sign that bulls are winning. However, there is still a need for caution. This is because after today’s drop, ADA price has again gone back to this line.

If the wedge plays out in the bullish manner that is usually the case with such patterns, it will not be surprising if we get to $1.35. This is an around 101% jump from the current price. However, Crypto Front’s bullish outlook does not end here. He adds that Cardano might reach $5 in a bull market peak.

Getting to $5 is part of a long-term Cardano price forecast 2025, but $1.35 is the closest target that might be reached soon. The odds of getting to $1.35 are even higher if the rest of the market starts to gain.

Cardano ETF Approval Odds Plummet Despite SEC’s Crypto Push

The falling ADA price has also happened at the same time that the odds of a Cardano ETF getting approved have plunged. Last month, the odds were at 89%. Yesterday, they fell to 75%. At press time, there was a slight rebound to 80% per Polymarket data.

What these fluctuations show is that many are not sure whether these products will be approved or denied. The odds depend on what is happening with the SEC as far as crypto regulations are concerned. CoinGape reported that the SEC has said liquid staking is not a security. What this means is that there is now room for DeFi to grow. Cardano has positioned itself in this DeFi space with a TVL of more than $325 million.

Besides this, there is also the ongoing Midnight Airdrop that is also bringing a lot of attention to Cardano and how the price might perform. Because of this airdrop, the number of ADA holders is now approaching 3.1 million.

Therefore, with all these developments in the Cardano ecosystem, the falling ETF odds might not shake investor confidence. If the broader market goes back to rallying, it is likely that the $5 target put across by analyst Crypto Front is achieved.