Cardano ($ADA ) is currently trading at approximately $0.7559, reflecting a 2.67% decline over the past 24 hours. Despite this recent dip, market analysts are optimistic about ADA's potential for a significant upward movement.
A key factor fueling this optimism is the increased probability of the U.S. Securities and Exchange Commission (SEC) approving a spot Cardano exchange-traded fund (ETF). According to data from Polymarket, the odds of such an approval have risen to 63%, up from 56% the previous day. This surge in confidence suggests growing investor interest and anticipation surrounding Cardano's potential integration into mainstream financial markets.
From a technical perspective, ADA is testing the resistance at the upper trendline of a descending triangle pattern. If ADA can break through the 50% Fibonacci retracement level at $0.91, it may trigger a 75% rally, targeting a price of $1.32. Such a breakout would also confirm a shift in the long-term trend towards a bullish outlook.
The Directional Movement Index (DMI) indicator supports this potential upward movement. The +DI line is trending upwards while the -DI line is moving downwards, indicating increasing bullish momentum. However, the Average Directional Index (ADX) line is declining, suggesting that the overall trend strength is weakening, which could pose challenges to sustaining a prolonged rally.
In summary, while ADA faces near-term resistance and market volatility, the combination of favorable technical indicators and the rising likelihood of a spot ETF approval presents a compelling case for a potential 75% price increase in the near future.
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Pi Coin ($PI) has experienced a significant decline, dropping over 20% to approximately $0.69, despite the Pi Network's recent announcement of a $100 million venture capital fund aimed at fostering real-world applications of the cryptocurrency.
The downturn is attributed to several factors:
"Sell-the-News" Reaction: Investors may have anticipated the fund's launch, leading to a surge in PI's price prior to the announcement. Once the news became public, profit-taking ensued, causing the price to drop.
Community Discontent: Long-standing supporters, known as "Pioneers," express frustration over the lack of functional decentralized applications (DApps) on the Pi Network, despite years of development and promises. The fund's announcement, without tangible progress, has been perceived by some as a diversion rather than a solution.
Technical Indicators: Analysts point to bearish patterns, such as the formation of a "bear flag," suggesting potential further declines. Key support levels are identified at $0.75 and $0.57, indicating areas where the price might stabilize if the downward trend continues.
Despite the current challenges, the Pi Network maintains that the venture fund will, in the long term, enhance the ecosystem by supporting startups that integrate PI into real-world applications.
Investors and community members are advised to monitor developments closely, considering both the technical trends and the network's progress in delivering on its promises.
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