Cardano's ADA surges 21% as ETF approval odds rise to 84%

Cardano's native cryptocurrency, ADA, has experienced a notable surge, with its price increasing by 21% over the past week. This upward momentum has brought ADA closer to the $1 mark, a significant milestone for the cryptocurrency. The price rise is supported by strong trading volume and a breakout past the $0.74 resistance level, indicating sustained upward momentum.

The technical analysis of ADA's chart reveals a rounding bottom pattern, which suggests a stable recovery from the recent low of $0.54. This pattern hints at a longer-term decline reversal and a potential price rally toward $1.06. The recent breakout past the $0.74 resistance level further supports this bullish outlook, as this area could soon turn into a new support level if purchasing volume continues.

The depth of the rounding bottom pattern indicates a 40% gain from $0.54 to $0.74. Based on this pattern, the next projected move could lift ADA to around $1.06. Market analysts note that the 200-day simple moving average (SMA) at $0.74 is a key threshold. A decisive move above it, backed by volume, often leads to a stronger breakout, as observed in November 2024.

While the relative strength index (RSI) is nearing overbought levels, it has historically moved higher before any correction. In prior cases, the RSI peaked near 89 before retracements occurred. This indicates that ADA may still have room for short-term gains if bullish sentiment continues.

Investor sentiment has also been buoyed by a sharp rise in ADA ETF approval odds. According to analysts' forecasts, approval chances have increased from 42% in mid-June to 84% currently. The potential for a US-based spot ETF has driven speculation, contributing to renewed interest in the token. This increased likelihood of institutional investment has added to the bullish narrative surrounding Cardano.

Cardano's Total Value Locked (TVL) has grown by more than $100 million since late June. This increase reflects rising activity across the network, including growing demand for ADA-based DeFi platforms and meme coins. The combination of strong technical patterns, rising ETF odds, and network expansion points to continued upward price movement for ADA.

In summary, the recent price surge of ADA and the increasing odds of ETF approval have positioned Cardano favorably in the market. The platform's focus on sustainability and scalability, along with the potential for institutional investment, makes it an attractive option for traders and investors. However, it is crucial to approach the market with caution, as the volatility of the cryptocurrency market can lead to rapid price fluctuations.