Regulators Could Spark ADA's $1.20 Surge With 90% ETF Approval Odds

ADA’s price trajectory has drawn significant attention from analysts amid growing optimism surrounding a potential spot ETF approval. According to a recent analysis, Cardano (ADA) could surge to $1.20 by the end of the current cycle, driven by a combination of technical indicators and favorable regulatory developments. On September 2, ADA was trading at $0.8180, reflecting a 2.10% increase, as investors anticipated a potential ETF approval deadline set for October [1].

A prominent crypto analyst highlighted a bullish technical setup for ADA, noting that the price has rebounded from the 100-day moving average, a historically significant support level. This pattern has historically led to 43% gains, as seen in August. Additionally, the formation of an inverse head-and-shoulders pattern suggests a potential rebound toward $1.00 and beyond [1]. The price has also found support at key levels within the Murrey Math Lines, reinforcing the likelihood of a short-term reversal.

The most immediate price target, according to the analyst, is the psychological level of $1.00, with a subsequent target of $1.20 should the price break above this threshold. However, a decline below $0.700 could invalidate the bullish scenario and signal a continuation of the bearish trend [1]. The four-hour chart also shows ADA in an ascending channel, with a recent retest of the lower boundary indicating a potential for a rebound in the near term.

A major catalyst for the ADA price rally is the anticipated approval of spot Cardano ETFs by the U.S. Securities and Exchange Commission (SEC). Analysts estimate that the approval probability has risen to nearly 90%, up from earlier in the year. Such an approval would mirror the bullish impact seen in the Ethereum and Bitcoin markets, where ETF inflows have led to billions in new capital. For example, Ethereum ETFs have absorbed over $13 billion in inflows in the past 12 months, while Bitcoin funds have seen over $54 billion in inflows [1].

Beyond the ETF prospects, ADA is supported by a range of ongoing developments, including its partnership with Chainlink and the NIGHT airdrop. The upcoming Leios upgrade is also expected to enhance network functionality and user adoption. These fundamentals, combined with the ETF narrative, are contributing to a more favorable market sentiment for ADA.

While the $1.20 target by year-end 2025 is ambitious, it is grounded in the current momentum and expected regulatory developments. Investors are advised to monitor key resistance and support levels closely, as they may provide early signals of a trend continuation or reversal.

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/)