Grayscale ETF Speculation Drives ADA Toward $1.50 Rally

Cardano’s ADA token is attracting renewed investor interest as speculation surrounding a potential ETF launch intensifies. Traders are increasingly positioning themselves for further gains, with many forecasting a price target of $1.50 if bullish momentum persists [1]. The recent upward movement in ADA has been supported by both technical formations and growing anticipation around institutional developments.

ADA has recently crossed a critical resistance level around $0.94, a development that analysts believe could serve as a springboard for a move toward $1.20 and potentially beyond [2]. Chart patterns, including an inverse head-and-shoulders formation and a relative strength index (RSI) reading below overbought territory, suggest a constructive setup for continued gains [3]. However, a breakdown below current levels could see the price retreat into a $0.85–$0.94 consolidation range, limiting near-term upside [4].

Grayscale’s reported actions to establish new trusts for Cardano and Hedera are drawing particular attention. Given the firm’s history of laying groundwork for product launches, the move has fueled speculation that an ADA ETF could be on the horizon [5]. This development, if confirmed, could open new avenues for institutional and retail investors to gain exposure to Cardano without directly holding the token, potentially boosting liquidity and demand.

ADA’s recent performance has also improved in Grayscale’s rankings, moving from ninth to third place in its “Top 10 Crypto Assets by Weekly Returns” list in early August [6]. The shift reflects growing optimism among institutional investors and adds further weight to the bullish narrative.

On the technical front, ADA’s on-chain Sharpe Ratio stands at approximately 1, a metric historically associated with favorable risk-adjusted returns. Past trends suggest that ADA could experience parabolic moves as this ratio approaches 2, which could be an indicator of further appreciation [7]. Additionally, key support levels, such as $0.86, remain intact, and some analysts are predicting a potential move to $1.21 if the level continues to hold [8].

Long-term holders of ADA have shown notable resilience, with many accumulating the token steadily since 2021. Despite a 150% year-on-year gain, these investors have not significantly sold their positions, a behavior that contrasts with the 2021 bull run, when short-term holders were more active [9]. This continued accumulation signals confidence in Cardano’s long-term potential.

Analysts like Ali Martinez have pointed to a possible rally to $1.50, driven by continued ETF speculation and strong price action [10]. While such forecasts remain speculative and are not guarantees of future performance, they reflect a growing consensus among market participants about the potential for ADA to break out.

The market remains attentive to regulatory developments, particularly as Grayscale reportedly moves forward with its ETF preparations. A confirmed launch could represent a turning point for Cardano’s institutional adoption and price trajectory [11].

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Source:

[1] Cardano News: Traders Bet on ETF Launch – is $1.50 Next? (https://coindoo.com/cardano-news-traders-bet-on-etf-launch-is-1-50-next/)

[2] Grayscale ETF Speculation Drives Rally Toward $1.50 Target (https://coincentral.com/cardano-ada-price-grayscale-etf-speculation-drives-rally-toward-1-50-target/)

[3] Grayscale's Cardano ETF Move and Record Holder Surge (https://bitcoinist.com/grayscales-cardano-etf-move-and-record-holder)

[4] Cardano surges as Grayscale advances spot ETF plans (https://www.investing.com/news/cryptocurrency-news/cardano-surges-as-grayscale-advances-spot-etf-plans-4190730)

[7] Long-term Cardano holders are not taking profit despite booming market, ETF speculation (https://cryptoslate.com/long-term-cardano-holders-are-not-taking-profit-despite-booming-market-etf-speculation/)

[8] Analyst predicts Cardano price to rally to $1.50 riding a wave of ETF hype (https://crypto.news/analyst-predicts-cardano-price-to-rally-to-1-50-riding-a-wave-of-etf-hype/)

[10] Analyst Predicts Breakout to $1.50 Amid Grayscale ETF ... (https://coingape.com/markets/cardano-price-prediction-analyst-predicts-breakout-to-1-50-amid-grayscale-etf-speculation/)