Its price has successively broken through the 7-day, 25-day, and 99-day moving averages. From a technical perspective, the market shows typical bullish signals such as bullish flags and inverse head-and-shoulders patterns — among them, bullish flags usually appear in an upward trend, representing a high probability of continuation after a brief consolidation; the inverse head-and-shoulders pattern is considered a strong reversal or continuation signal, with the breakout of the neckline often seen as a confirmation signal, providing some technical support for subsequent trends.
From the market driving factors, some recent employment data released in the United States has shown weakness, intensifying market expectations that the Federal Reserve might enter an interest rate cut cycle earlier. If the Federal Reserve cuts interest rates, dollar liquidity is expected to marginally ease, which usually benefits risk assets represented by cryptocurrencies. As one of the mainstream cryptocurrencies, ADA may also benefit from the increase in market risk appetite.
On the other hand, on-chain data shows that the number of "whale" addresses holding more than 150 million ADA has remained relatively stable recently. The confidence of large holders reflects a certain level of recognition of its fundamentals, which also provides support for ADA's price. Considering both technical aspects and market environment, some analysts believe that there is about a 30% upside potential for ADA in the short term, with a target price possibly pointing to $1.07.
It is worth noting that the approval progress of the spot ADA ETF has always been a focus of the market. If related products can obtain regulatory approval before October, it is expected to introduce more institutional funds into the market — the participation of institutional investors usually enhances the liquidity and valuation recognition of assets, which may further boost the price of ADA. In the long term, if the Cardano blockchain continues to advance in areas such as smart contract ecosystem, decentralized applications (DApps) implementation, and cross-chain interoperability, combined with the overall positive development trend of the industry, there is an optimistic view that its long-term target price could reach as high as $12, but achieving this target relies on the continuous realization of multiple favorable conditions, and the cryptocurrency market is highly volatile, so investors should remain cautious.
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