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.
