Cardano price breaks out of double bottom formation, analyst predicts $1.50 rally fueled by Grayscale ETF hype

Cardano (ADA) price has broken out of a months-long double bottom formation and is expected to rally to $1.21 if $0.86 holds as support. Analyst Ali Martinez predicts an even larger rally to $1.50, citing the 12-hour perps chart. The breakout is fueled by Grayscale's Cardano Trust filing, which may signal future ETF exposure for ADA.

Cardano (ADA) price has shown a significant breakout from a months-long double bottom formation, with analysts predicting a potential rally to $1.21 if $0.86 holds as support. Analyst Ali Martinez has set an even higher target of $1.50, citing the 12-hour perpetual contract chart [1]. The breakout is being fueled by Grayscale's Cardano Trust filing, which may signal future ETF exposure for ADA [3].

The recent breakout above $0.86 is considered more convincing, backed by strong volume and a large daily candle. ADA is now holding above both the 20-day EMA and 50-day SMA, with the short-term EMA trending above the longer-term SMA, reinforcing bullish momentum [1]. If buyers can sustain this move and turn the $0.86 level into support, the double bottom pattern projects a measured target around $1.21, representing a potential gain of roughly 22% from the current price of $0.99 [1].

The surge in Cardano price is also being supported by a major fundamental catalyst. On August 12, Grayscale registered the Grayscale Cardano Trust ETF in Delaware alongside the Grayscale Hedera Trust ETF, signaling potential future ETF exposure for both ADA and HBAR [3]. These filings often precede official SEC S-1 applications, suggesting that regulated investment vehicles for these assets could be launched in the near term [1].

The Cardano derivatives market reflects the bullish outlook in the spot market, as the futures Open Interest (OI) surges to $1.43 billion on Tuesday from the $1.2 billion recorded on August 3, when ADA declined and tested support at $0.68 [2]. A steady increase in OI, which represents the notional value of outstanding futures or options contracts, indicates growing interest in ADA [2]. During the rally in July to highs of $0.93, OI surged, peaking at $1.74 billion before shrinking as investors booked profits amid worsening sentiment across the market [2].

The technical outlook for Cardano is also bullish, with a MACD buy signal and rising trading volume. The 50-day EMA crossed above the 100-day EMA and subsequently flipped the 200-day EMA in late July, encouraging risk-on sentiment [2]. The third Golden Cross appeared with the 100-day EMA crossing above the 200-day EMA in early August, further supporting the bullish case for ADA [2].

References:

[1] https://crypto.news/analyst-predicts-cardano-price-to-rally-to-1-50-riding-a-wave-of-etf-hype/
[2] https://www.fxstreet.com/cryptocurrencies/news/cardano-price-forecast-ada-flaunts-bullish-structure-targeting-100-as-open-interest-surges-202508131304
[3] https://coinedition.com/grayscale-cardano-ada-hedera-hbar-etf-trust-filing/