Cardano (ADA) is witnessing a strong upward trend due to expectations of ETFs and positive sentiment, with on-chain indicators and liquidation data showing that selling pressure remains limited.
Cardano has increased nearly 13.4% to $0.8787, marking an impressive comeback as the cryptocurrency market recovers due to several positive technical, sentiment, and ETF-related factors.
MAIN CONTENT
Cardano's price increase is driven by ETF expectations and positive market sentiment, targeting a crucial resistance level.
On-chain data shows limited supply and low selling pressure, supporting a sustainable upward price trend.
Large short position liquidations increase momentum for the buying side, reinforcing ADA's potential for further increases.
What breakthrough is Cardano (ADA) approaching?
Cardano has just recorded a strong price increase, nearing the crucial resistance area of $0.88–$0.90 – which was a major barrier on the price chart. According to technical analysis, ADA has created several higher lows since mid-July, reflecting sustained buying pressure and investor optimism.
“The price trend creating higher lows since mid-July is a signal that buying pressure is still present and the potential for an upcoming price breakout is imminent.”
Ali – Market Analyst (Source: X/Ali Charts, 13/8/2025)
Technical charts agree that if ADA successfully breaks through this short-term resistance, the upward momentum could be strengthened as investor sentiment targets the next psychological mark of $1, paving the way for a rise to $1.50.
Maintaining price behavior closely aligned with the upper trendline further indicates substantial accumulation momentum, especially as overall market sentiment has been growing positively recently.
What drives optimism and speculation about ETFs with ADA?
Information about Grayscale establishing a Delaware trust fund for ADA has signaled the possibility of a Spot ETF for Cardano, which could attract larger institutional capital into the network.
“If a spot ETF for Cardano appears on the market, we could witness a significant transformation in institutional cash flow into this ecosystem.”
U.S. Investment Advisory Organization (Source: ICIS Delaware, 2025)
At the same time, the weighted sentiment index has surged to 1.495, reflecting a broadly positive sentiment in the cryptocurrency investor community and creating a favorable environment for ADA to break out.
The reality shows that as buying cash flow continues and regulatory factors are favorable, ADA is highly likely to maintain its upward momentum in the short term. Positive sentiment encourages investors to challenge higher resistance zones in the near future.
What does On-chain supply data reveal?
The on-chain MVRV Z-score has risen to 0.445, indicating that most holders are in profit, but it has not yet reached levels that typically trigger large-scale profit-taking.
“The current MVRV Z-score is not high enough to trigger widespread panic selling; it is a time of positive market sentiment.”
Santiment, On-chain Market Report (13/8/2025)
Additionally, Cardano's Stock-to-Flow ratio has also surged, confirming a decreasing supply; this is a traditional factor supporting the upward price trend.
The continuous increase in scarcity indicators signals that buyers will have to pay higher prices if they want to increase their holdings, allowing ADA to maintain and expand its upward momentum if demand continues to strengthen.
What impact do short position liquidations have on Cardano's price?
Liquidation statistics show that short positions on ADA suffered losses exceeding $832,000 in just one day, while longs only lost $439,000. This reflects that sellers are being forced out of the market, creating a short squeeze that strongly supports price increases.
“The continuous liquidation of short positions on major exchanges like Binance, Bybit, and OKX proves the wave of price squeezing and positive momentum for ADA.”
CoinGlass, futures liquidation analysis (13/8/2025)
This phenomenon often causes traders to have to close losing sell orders while also buying back assets to cover losses, increasing buying pressure and potentially driving prices up faster in the short term.
If buyers continue to control the market, ADA has significant potential to approach or surpass the next resistance zone, creating a new price surge for this cryptocurrency.
Comparing Cardano's price increase momentum with other major Altcoins
When comparing Cardano to major Altcoins like Ethereum or Solana in the context of ETFs, short squeezes, and on-chain data, ADA possesses strong momentum with a combination of several factors: institutional expectations, optimistic investor sentiment, and low supply.
Criteria Cardano (ADA) Ethereum (ETH) Solana (SOL) ETF Expectations High (Grayscale Trust ADA) High (Ethereum ETF) Average Weighted Sentiment Index 1.495 1.23 (June 2025, Santiment) 0.98 MVRV Z-score 0.445 0.38 0.31 Short liquidations (24h outstanding) $832,000 $620,000 $510,000
The comparison table shows that Cardano is simultaneously maintaining an advantage in sentiment, ETF expectations, and cash flow strength during short squeezes compared to its main competitors in the Altcoin market at this time.
Frequently Asked Questions
What factors have caused Cardano to increase in price?
Cardano is breaking out thanks to positive market sentiment, ETF expectations, and on-chain data showing a significant reduction in selling pressure.
Can Cardano surpass $1?
If it maintains the current upward momentum with strong drivers, ADA has the potential to surpass the $1 mark, especially as institutional cash flow joins in.
What does Cardano's MVRV Z-score indicate?
The current MVRV Z-score is rising without exceeding large profit-taking thresholds, allowing ADA's price to have significant short-term upside potential.
Why does the liquidation of shorts cause ADA prices to rise?
When short positions are liquidated, investors must buy back the coin, creating significant buying pressure in a short time and pushing the price up.
What does a Spot ETF mean for Cardano?
A spot ETF will attract large institutional money into Cardano, boosting liquidity and pricing of ADA in the market.
What should investors pay attention to with ADA?
Investors need to closely monitor cash flow movements, market sentiment fluctuations, and on-chain metrics to timely adjust strategies.
What advantages does Cardano have compared to Ethereum and Solana?
Cardano converges with ETF expectations, positive sentiment, strong short squeeze data, and low supply, creating a notable competitive advantage within the Altcoin group.
Source: https://tintucbitcoin.com/etf-grayscale-co-day-ada-len-15-usd/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to always stay updated with the latest news on the cryptocurrency market and not miss any important information!
