#Cardano ’s native token, $ADA , is capturing significant attention as market sentiment turns increasingly bullish. According to a recent poll by TapTools on X, ADA garnered 4,844 community votes on CoinMarketCap, with 87.0% of respondents expressing optimism about its future. For comparison, Bitcoin (BTC) received a slightly higher bullish sentiment at 87.3%, based on 9,438 votes.

Spotlight on SEC’s Upcoming ADA ETF Decision

A pivotal moment for ADA is fast approaching, as the U.S. Securities and Exchange Commission (SEC) is set to rule on Grayscale’s spot ADA exchange-traded fund (ETF) application on May 29, 2025. The original decision deadline of April 14 was extended by 45 days following an SEC notice on March 11, allowing for a more thorough review of the proposal.

Market participants are optimistic about the outcome. On Polymarket, over 71% of users predict the SEC will approve the ETF, while Bloomberg ETF analyst Eric Balchunas estimates the probability at 75%. If approved, the ETF could pave the way for greater institutional participation in Cardano and provide a potential catalyst for ADA’s price to break above the $0.76 resistance level.

Cardano’s On-Chain Activity Shows Steady Growth

Beyond the ETF speculation, Cardano’s decentralized finance (DeFi) ecosystem continues to expand. According to DeFiLlama, the total value locked (TVL) on Cardano’s DeFi platforms currently stands at approximately $346.12 million. While this figure is modest compared to larger blockchains, it signals steady growth in Cardano’s DeFi space.

Cardano currently supports 48 active DeFi applications, ranging from lending and borrowing to yield farming platforms. Projects like Indigo offer competitive yields—up to 28% on stablecoins and 20% on Bitcoin-wrapped assets—though many rewards are distributed in native tokens, which can influence investor appeal.

ADA Price Outlook: Bullish Technicals with a Cautious Eye on the SEC

From a technical perspective, ADA’s price action suggests bullish potential. After briefly breaking above the $0.76 resistance level on May 25, ADA has retraced and is now consolidating. A bullish flag pattern has emerged on the 4-hour chart, with recent price rejections pointing upward, signaling the possibility of a rally.

The daily Relative Strength Index (RSI) sits at 48, indicating that there is room for further upside momentum.

However, market sentiment remains cautious ahead of the SEC’s decision. The outcome of the ETF application will likely determine ADA’s short-term trajectory, with potential for significant price movements in either direction.

Conclusion

Cardano stands at a critical juncture, with community enthusiasm, growing on-chain activity, and technical indicators pointing toward potential upside. The SEC’s decision on Grayscale’s ADA ETF application, expected tomorrow, will be a key catalyst. Should approval be granted, ADA could experience a surge in institutional interest and price appreciation. Nonetheless, market participants should remain vigilant, as regulatory developments continue to shape the cryptocurrency landscape.

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