$ADA jumped 75% to $1.32 after the spot Cardano ETF's odds of getting SEC approval rose to 63%.
The crypto market is facing a bearish weekend, and Cardano (ADA) has not been spared after falling 3% to trade at $0.75.
ADA price is also losing ground after falling to the ninth position in the market cap rankings.
Despite the bearish scenario, there are clear reasons for ADA to recover and possibly reach higher levels.
These include a strong technical outlook and high odds that the SEC will approve a spot Cardano ETF.
ADA Price Gears Up for a 75% Rally
The main reason behind the bullish Cardano price prediction is the bullish technical outlook as it tests resistance at the upper trendline of the descending triangle pattern.
$ADA has been testing a breakout from this resistance line for the past two weeks. If demand increases and Cardano overcomes the resistance at the 50% Fibonacci level of $0.91, it will gain 75% to the price of $1.32.
A break of the descending triangle pattern on the weekly chart will also confirm that the long-term trend is bullish.
The DMI indicator also shows an upward trend for the ADA price as the +DI indicator (blue) points north while the -DI indicator (red) tips south.
As long as the +DI trend remains above the -DI, momentum will remain strong. However, the ADX line is falling, indicating that the broader trend is bearish, which could stop Cardano's price rally.
Cardano ETF Odds Reach 63%
Another bullish factor driving the ADA price bullish momentum is the high likelihood of the Cardano Exchange-Traded Fund (ETF) being approved.
Polymarket data shows that there is currently a 63% chance that the SEC will approve the product this year, leading to optimism in the Cardano community.
Over the past day, Cardano's ETF approval ratings have increased from 56% to 63%, indicating that more investors expect the product to launch soon.
So far, only Grayscale has filed with the SEC for a spot Cardano ETF, and the commission recognized the product in February. It is important to note that Grayscale was instrumental in getting the first BTC ETF approved in the US.
Swiss-based asset manager 21Shares also offers an ADA ETP that has raised over $72M in assets under management.
The product's success highlights the high institutional interest towards Cardano, which is huge for $ADA ,s price.
With Cardano’s potential to join Bitcoin and Ethereum on Wall Street, this points to a bullish ADA price as investors hope the altcoin will continue its rally.
Additionally, a breakout from the descending triangle pattern indicates that a 75% rally is imminent, and could lead to an upward trend.
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