Cardano's ETF Hopes Nudge ADA Toward $1.20 as Bullish Signals Align

Cardano (ADA) is experiencing heightened market optimism ahead of potential ETF approval, with analysts forecasting significant price gains. As of September 2, ADA was trading at $0.8180, up 2.10%, driven by investor buying following a recent dip and anticipation of a spot ETF decision by the U.S. Securities and Exchange Commission (SEC). The approval odds for a Cardano ETF have risen to 87% on prediction market Polymarket, up from as low as 60% earlier in the year, with an expected decision in October. This follows Grayscale’s updated S-1 filing with the SEC for an ADA ETF, which would trade on NYSE Arca and be custodied by Coinbase Custody. The firm’s filing aligns with a broader trend of institutional interest in altcoins, particularly Cardano, which is seen as a potential driver for ADA’s price to surpass $1.00, with some analysts projecting gains of 40–55% if institutional inflows materialize.

Technical indicators also support a bullish case for ADA. On the four-hour chart, ADA has tested the lower boundary of an ascending channel, suggesting a potential rebound. The daily chart shows ADA finding support at the 100-day moving average, a level historically associated with price rebounds. For instance, ADA surged 43% in August after hitting this support. Furthermore, the formation of an inverse head-and-shoulders pattern, with a head at $0.50 and a neckline just below $1.00, suggests a possible continuation of the upward trend. A break above $1.00 could lead to a move toward the $1.20 price target proposed by one analyst. However, this bullish outlook is contingent on ADA maintaining above the critical support level of $0.700. A break below this level could negate the near-term gains and shift sentiment toward the downside.

The potential approval of a Cardano ETF is viewed as a key catalyst for broader adoption and institutional investment. Similar to the success of Bitcoin and Ethereum ETFs, a Cardano ETF is expected to bring substantial inflows, potentially boosting the token’s market capitalization and liquidity. Ethereum’s spot ETFs have seen $13 billion in inflows over the past 12 months, while Bitcoin’s have attracted $54 billion. These figures highlight the potential for ADA to experience a similar surge if the SEC approves the ETF, particularly given the ongoing support from ecosystem upgrades such as the Leios hard fork and partnerships like the one with Chainlink. Additionally, the NIGHT airdrop and the implementation of the Midnight privacy protocol continue to strengthen Cardano’s fundamental appeal to developers and investors.

A recent internal audit conducted by Input Output Global (IOG), law firm McDermott Will & Schulte, and accounting firm BDO has further bolstered confidence in the project. The audit addressed allegations of financial misconduct during the redemption of ADA vouchers sold in 2015–2017. It found no evidence of wrongdoing and confirmed that 99.7% of all vouchers were successfully redeemed. This resolution comes amid a broader market correction for ADA, which fell 5.7% in the past week amid whale selling and overhead resistance. Despite the recent decline, long-term investors remain optimistic about the token’s trajectory, citing strong fundamentals and the potential for institutional adoption.

Cardano’s ecosystem also continues to expand with new use cases being explored. The Cardano Foundation recently announced a partnership with Book.io to introduce tokenized e-books via Decentralized Encrypted Assets (DEAs), offering writers and consumers a new way to distribute and own intellectual property. This innovation aligns with Cardano’s broader vision of leveraging blockchain technology for real-world applications, reinforcing its position as a platform for scalable and secure decentralized solutions.

Source: [1] Crypto Analyst Sees Cardano Price Surging to $1.20 as ADA ETF Odds Near 90% (https://coingape.com/markets/crypto-analyst-sees-cardano-price-surging-to-1-20-as-ada-etf-odds-near-90/) [2] BlackRock Holds Back on XRP as ETF Rumors Heat Up for Cardano (https://bitcoinist.com/blackrock-holds-xrp-as-etf-rumors-heat-up-cardano/) [3] Cardano Internal Audit Reveals No Misconduct, Confirms 99.7% of ADA Vouchers Redeemed (https://finance.yahoo.com/news/cardano-internal-audit-reveals-no-075803441.html) [4] Cardano (ADA) News Today: September 4th (https://cryptopotato.com/cardano-ada-news-today-september-4th/)