Cardano (ADA) Sees Bullish Breakout Amid Dwindling ETF Hopes

Cardano (ADA) has sparked renewed investor interest following a bullish technical breakout, despite a decline in the odds of a U.S. spot ETF approval. On August 6, ADA traded at $0.72, down 2.35% from the previous 24-hour period, amid broader market volatility. However, technical analysts are highlighting a key formation—a falling wedge pattern—suggesting potential upside for the token. The pattern, characterized by narrowing price action between rising support and descending resistance, often signals a reversal in momentum [1].

Crypto analyst Crypto Front noted that ADA recently broke above the wedge’s resistance level, which now acts as support. The price has since pulled back to retest this level, a move often interpreted as bullish control in a temporary pullback. If the breakout is sustained, the next short-term target is $1.35, representing a potential 101% gain from current levels [1]. More optimistically, the analyst projects that Cardano could reach $5 in a favorable bull market scenario, though this depends on broader market conditions and sustained investor confidence [1].

Despite the drop in ETF approval prospects—Polymarket data shows odds fluctuating between 75% and 80%—ADA continues to attract new holders, driven by a growing DeFi footprint and airdrop campaigns. The platform’s total value locked (TVL) has surpassed $325 million, and the Midnight airdrop has boosted the number of ADA holders to nearly 3.1 million [1]. These developments suggest ongoing network activity, which could support a potential price recovery even if ETF approval is delayed.

Other factors are also influencing ADA’s trajectory. A successful community treasury vote marked a milestone for the project, showcasing a democratic governance model that could enhance long-term confidence in the ecosystem [3]. However, challenges remain. Trading volumes have dropped by 60%, and stalled upgrades have dampened on-chain activity, raising questions about ADA’s ability to retain investor interest [1]. The altcoin market is also shifting, with newer projects like Sui Network and Remittix (RTX) gaining traction due to faster transaction speeds and real-world applications [4].

While the $5 price target is speculative and hinges on broader market sentiment and project progress, Cardano must demonstrate meaningful advancements in its development roadmap to remain competitive. The coming months will be critical in determining whether ADA can reassert itself as a major player in the altcoin space or cede ground to more innovative rivals [4].

Source:

[1] Cardano price prediction: ADA struggles to keep investors ... https://coinjournal.net/news/cardano-price-prediction-ada-struggles-to-keep-investors-as-brighter-competition-steals-spotlight/

[3] Cardano Marks Historical Milestone With Governance Vote ... https://www.mitrade.com/au/insights/news/live-news/article-3-1014013-20250805

[4] Why Cardano (ADA), Ripple (XRP), and Remittix (RTX) are ... https://coinjournal.net/news/why-cardano-ada-ripple-xrp-and-remittix-rtx-are-must-buy-altcoins-in-2025/