Cardano (ADA) Surges 4% on US ETF Approval Hopes

Cardano (ADA) has surged by 4% in the past 24 hours, reaching a daily high of $0.728. This upward momentum is driven by growing optimism surrounding the potential approval of a spot ADA exchange-traded fund (ETF) in the United States. The price of ADA has been consolidating near the $0.70 mark, with analysts predicting that it could break through the $0.720 resistance level and continue its rally.

The recent recovery wave for ADA began from the $0.650 zone, and the cryptocurrency has since been trading above this level. Technical analysis indicates that ADA is gaining momentum, with patterns suggesting a potential major breakout. Analysts have identified key support and resistance levels, with the $0.720 zone acting as a crucial resistance level that ADA must overcome to continue its upward trajectory.

According to Polymarket data, there’s a 55% chance of ADA ETF approval by the end of 2025, providing fresh momentum for investors and traders alike. The optimism surrounding ADA's price is further fueled by the growing interest in ETFs that track the performance of the cryptocurrency. According to analysts' forecasts, the approval of an ADA-focused ETF could provide a significant boost to the price of ADA, potentially pushing it beyond the $0.80 mark. This optimism is based on the historical performance of other cryptocurrencies that have seen significant price increases following the approval of ETFs.

Grayscale filed the first application for a spot ADA ETF with the U.S. Securities and Exchange Commission (SEC) on February 10, 2025. The filing was published for public comment by February 24, 2025, with the initial decision deadline set for April 10. A maximum extension pushes the review window to October 22, 2025. A listed ADA ETF would allow institutional investors to gain exposure to Cardano without directly holding crypto assets, a development that could drive significant capital inflows. Similar moves in Bitcoin and Ethereum markets have historically triggered sharp price rallies following ETF-related news.

Backing this bullish case is a renewed sense of conviction within the Cardano community. Prominent Cardano supporter emphasized that Cardano remains a unique large-cap crypto, setting higher lows against Bitcoin across multiple market cycles. “Few realize how special that makes it. A must-have allocation,” the supporter asserted.

ADA’s technical structure leans bullish with the RSI (Relative Strength Index) currently standing at 60.66, signaling positive momentum but staying just below overbought territory (above 70). Further, the price is now pressing against the upper Bollinger Band at $0.7356, indicating strong upward pressure. Sustained closes above this upper band could trigger a bullish continuation. In a bullish case, if buying pressure persists, ADA could break through the $0.7356 resistance and target the psychological $0.80 level next, with an extended move toward $0.90 if ETF approval sentiment strengthens further.

On the flip side, failure to hold above the 20-day EMA ($0.6723) would expose ADA to a retracement toward the mid-Bollinger band around $0.6540. A deeper correction could drag prices to the lower band near $0.5723. The potential approval of an ADA-focused ETF is not the only factor driving the price of ADA higher. The cryptocurrency has also benefited from a broader market rally, with other altcoins experiencing similar gains. The recent price action of ADA has been characterized by a series of higher highs and higher lows, indicating a bullish trend.

In conclusion, the price of ADA is currently consolidating near the $0.70 mark, with analysts predicting that it could break through the $0.720 resistance level and continue its rally. The growing optimism surrounding the potential approval of an ADA-focused ETF, combined with the broader market rally, has provided a significant boost to the price of ADA. As the cryptocurrency continues to gain momentum, investors will be closely watching to see if it can break through the $0.80 mark and continue its upward trajectory.