Institutional Moves and Patterns Point to ADA's Next Big Breakout

Experts have identified several altcoins, including BlockDAG, ADA (Cardano), BONK, and PENGU, as top choices for investors seeking potential gains in the current market environment. These tokens have shown varying degrees of technical and market strength, with institutional interest and regulatory developments playing a key role in shaping their trajectories.

Cardano (ADA) has been one of the most closely watched altcoins in recent months, driven by bullish technical indicators and growing institutional interest. The token has formed a bull flag pattern on short-term charts, with a breakout above $1 signaling a potential move toward $1.80, as highlighted by analyst Clifton Fx. The pattern on the weekly chart points to an even more ambitious target of $2.12, supported by a breakout through a symmetrical triangle formation. On-chain metrics, such as the RSI, have also shown a steady increase in momentum, rising from 41 in mid-June to 59 as of late August. Additionally, ADA’s futures trading volume reached a five-month high of $7 billion in August, reflecting heightened activity across both institutional and retail investor segments. This surge in volume aligns with the last significant ADA price rally, which occurred in March 2025 when prices were also above $1.

The possibility of an ETF approval for Cardano has further fueled optimism. As of late August, the odds of regulatory approval for a Cardano ETF stood at 81%, up from 59% in early August. This development has spurred increased interest in the token, with total value locked (TVL) in Cardano’s DeFi protocols rising to $423.6 million—a 56% increase since July 1. Historical data suggests that such growth in TVL has coincided with significant price movements, as seen in late 2024 when a 271% TVL increase was followed by a 300% ADA price rally.

Solana-based memecoin BONK has also drawn attention, particularly due to its rapid accumulation by institutional investors and recent corporate activity. BONK’s price reached a peak of $0.00002841 in early August before retreating, but the token has remained within a volatile trading range. Notably, a drinks company recently announced plans to acquire up to $115 million worth of BONK by year-end, signaling renewed institutional confidence in the token. The memecoin has also benefited from a $25 million corporate treasury boost following a partnership with Nasdaq-listed Safety Shot (SHOT). Despite a 58% increase in trading volume since early August, BONK’s price remains below its all-time high of $0.000059, which was reached in November 2024.

PENGU, another emerging memecoin, has demonstrated strong performance in recent weeks, with a price surge of over 151% in the 30-day period ending in August. While the token lacks the institutional backing of ADA or BONK, its growing popularity and social media traction have contributed to increased retail participation. Analysts point to PENGU as a potential high-multiple play within the broader altcoin rotation cycle.

In contrast to the growing momentum in ADA and BONK, some analysts have highlighted the potential for newer tokens with smaller market caps to deliver exponential returns. For instance, projects like Token6900 and MAGACOIN FINANCE have been cited as alternatives that could outperform legacy altcoins in the current market phase. These projects, still in early accumulation stages, offer asymmetrical upside potential and are being positioned as breakout candidates in the next rotation phase of the altcoin cycle.

Overall, the current altcoin landscape reflects a mix of established projects with strong technical and institutional fundamentals and newer tokens with high growth potential. Investors are advised to balance their portfolios to capture both stability and speculative upside, depending on their risk tolerance and investment horizon.

Source:

[1] How High Can Cardano Price Go Beyond $1? (https://cointelegraph.com/news/cardano-massive-rally-one-dollar-breaks-how-high-can-ada-price-go)

[2] Cardano ETF Filing Lifts ADA — Is It Still the Best Altcoin to ... (https://crypto-economy.com/cardano-etf-filing-boosts-ada-still-one-of-the-best-altcoins-to-buy-before-1/)

[3] Cardano Price to $0.95? Altcoin Rally Driving Bullish Momentum (https://finance.yahoo.com/news/cardano-price-0-95-altcoin-190334790.html)

[4] Bonk Price, BONK Price, Live Charts, and Marketcap (https://www.coinbase.com/price/bonk)