Cardano (ADA) is experiencing strong upward momentum driven by ETF expectations and positive sentiment, with on-chain indicators and liquidation data suggesting that selling pressures remain limited.
Cardano rose by about 13.4% to $0.8787, marking an impressive comeback amid a broader recovery in the cryptocurrency market driven by positive technical news, sentiment, and news related to ETFs.
Main Content
Cardano has risen thanks to hopes for ETFs and positive market sentiment, heading towards key resistance.
On-chain data shows limited supply and low selling pressure, supporting a sustainable bullish trend.
The large amount of short liquidation adds momentum for the bulls, enhancing ADA's potential for further gains.
What breakout is Cardano (ADA) approaching?
Cardano recorded a strong price increase, approaching the key resistance area between $0.88 and $0.90, which was a major barrier on the price chart. According to technical analysis, ADA has registered several higher lows since mid-July, reflecting sustained buying strength and optimism among investors.
"The trend of prices reaching their lowest levels since mid-July is a sign that buying pressure is still present and that a bullish breakout is imminent."
Ali - Market Analyst (Source: X/Ali Charts, August 13, 2025)
The consensus on the technical chart is that if ADA successfully surpasses this short-term resistance, the bullish momentum may be reinforced by investor sentiment towards the next psychological target at $1, paving the way for a rise to $1.50.
Maintaining price behavior near the upper trend line also shows that accumulation momentum remains very strong, especially as general market sentiment has been growing positively recently.
What drives optimism and speculation about ADA's ETF?
Reports of Grayscale establishing a trust fund in Delaware for ADA indicate the potential for a Spot ETF for Cardano, which could attract more institutional capital to the network.
"If the Cardano Spot ETF is launched in the market, we may witness a tremendous shift in institutional capital flow into the ecosystem."
US Stock Investment Consulting Group (Source: ICIS Delaware, 2025)
At the same time, the weighted sentiment index rose to 1.495, reflecting widespread positive sentiment in the cryptocurrency investor community and creating a favorable environment for ADA's emergence.
In fact, with continued buying flows and favorable regulatory factors, ADA stock is likely to maintain its bullish momentum in the short term. Positive sentiment encourages investors to surpass higher resistance levels in the upcoming period.
What do supply data on the chain reveal?
The Z-score of MVRV on the chain rose to 0.445, indicating that most holders are making profits, but not yet at levels that would typically lead to widespread profit-taking.
"The current Z-score of the MVRV indicator is not sufficient to trigger widespread sell-offs, which is a positive moment in the market."
Santiment Blockchain Market Report (August 13, 2025)
In addition, the stock-to-flow ratio in Cardano has risen sharply, confirming an increasingly scarce supply; this is a traditional factor supporting the bullish trend.
The continuous rise in scarcity indicators suggests that buyers will have to pay higher prices to increase their holdings, allowing ADA to maintain and expand its bullish momentum if demand continues to strengthen.
How does the short position liquidation trend affect Cardano's price?
Liquidation statistics show that short positions on ADA incurred losses exceeding $832,000 in just one day, while long positions lost only $439,000. This reflects sellers being forced out of the market, creating pressure on short positions that supports strong price increases.
"The ongoing liquidation of short positions on major exchanges like Binance, Bybit, and OKX indicates a wave of upward pressure and positive momentum for ADA."
CoinGlass, Futures Liquidation Analysis (August 13, 2025)
This phenomenon often leads traders to close losing sell orders and repurchase assets to cover losses, resulting in increased buying pressure and potentially driving prices up faster in the short term.
If the bulls continue to control the market, ADA has the potential to approach or surpass the next resistance area, creating a new bullish wave for this cryptocurrency.
Comparing Cardano's price momentum with other major altcoins
When comparing Cardano with major altcoins like Ethereum or Solana in the context of ETFs, short pressure, and on-chain data, ADA possesses strong momentum with a mix of several factors: institutional expectations, optimistic investor sentiment, and low supplies.
Cardano (ADA) Ethereum (ETH) Solana (SOL) ETF Expectations High (Grayscale Trust ADA) High (Ethereum ETF) Average Weighted Sentiment 1.495 1.23 (June 2025, Santiment) 0.98 Z-Score for Average Market Value (MVRV) 0.445 0.38 0.31 Short Liquidation (Superior Performance over 24 hours) $832,000 $620,000 $510,000
The comparison table shows that Cardano maintains an advantage in terms of sentiment and ETF expectations and cash flow strength during short pressure periods compared to its main competitors in the Altcoin market currently.
Frequently Asked Questions
What factors led to the rise in Cardano's price?
Cardano is surging strongly thanks to positive market sentiment, ETF expectations, and on-chain data showing a sharp decline in selling pressure.
Can Cardano surpass $1?
If ADA maintains its current bullish momentum strongly, it is fully capable of surpassing the $1 mark, especially with institutional funds joining.
What does Cardano's Z-Score indicator say?
The current Z score of MVRV is rising without exceeding the key profit-taking threshold, allowing ADA's price to gain more room for increase in the short term.
Why does short liquidation lead to an increase in ADA's price?
When short positions are liquidated, investors have to repurchase the currency, creating significant buying momentum in a short time frame and pushing the price up.
What does a Spot ETF mean for Cardano?
The Spot ETF is expected to attract substantial institutional funds to Cardano, enhancing ADA's liquidity and market valuation.
What should investors pay attention to with ADA?
Investors need to closely monitor cash flow movements, market sentiment fluctuations, and on-chain indicators to adjust strategies promptly.
Compared to Ethereum and Solana, what advantages does Cardano have?
Cardano combines ETF expectations, positive sentiment, strong short pressure data, and low supply, creating a notable competitive advantage in the Altcoin space.
Source: https://tintucbitcoin.com/etf-grayscale-co-day-ada-len-15-usd/
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