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- Cardano [ADA] surged 13.4%, nearing the $0.90 resistance zone.
- ETF speculation and positive sentiment are bolstering bullish momentum.
- On-chain metrics show limited selling pressure, raising breakout potential.
Cardano [ADA] has posted an impressive 13.4% surge in the past 24 hours, trading at $0.8787 and approaching a critical resistance range between $0.88 and $0.90. This zone has historically capped upward moves, but a decisive breakout could pave the way toward the $1.50 target some analysts are projecting.
Since mid-July, ADA has formed higher lows, signaling sustained buying pressure. The altcoin’s price is now testing its upper trendline, suggesting momentum is building for another potential leg higher. Traders are closely watching whether ADA can clear the psychological $1 mark before attempting the next move toward $1.50.
ETF Buzz and Sentiment Fuel Optimism
Grayscale’s creation of a Delaware trust for ADA has sparked speculation about a future Spot ETF — a development that could draw in institutional investors. This coincides with a sharp rise in weighted sentiment, which climbed to 1.495, indicating growing bullish confidence in the market.
Historically, strong sentiment combined with institutional anticipation has created fertile ground for extended rallies. However, follow-through buying and any regulatory updates will be critical in sustaining ADA’s upward momentum.
On-Chain Data Signals Limited Selling Pressure
On-chain indicators support the bullish case. The MVRV Z-score rose to 0.445, showing holders are in profit but not at levels that typically trigger heavy selling. Cardano’s Stock-to-Flow ratio also jumped, signaling a tightening supply that could push prices higher as scarcity grows.
Also Read: Cardano (ADA) Surges Toward $1.00 as Trading Volume and Investor Interest Spike
With shorts absorbing over $832,000 in losses — nearly double that of longs — liquidation imbalances could amplify a short squeeze, further fueling ADA’s rally.
Outlook
Cardano’s latest rally combines bullish technical patterns, supportive on-chain metrics, and speculative ETF excitement. If ADA breaks above $0.90, the $1.50 target could come into focus sooner than expected. For now, traders are watching closely to see if the momentum can hold through this critical resistance level.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
