Cardano Price Analysis

Cardano price has remained in a tight range over the past few weeks as market participants await the next catalyst.

Current Price Status

Cardano (ADA) was trading at $0.760, down by 43% from its highest level in December last year. It has underperformed other popular coins like Mantra (OM) and Cronos (CRO) this month.

Key Catalysts for Price Increase

Cardano has three main catalysts that could propel it to $2 in the coming months:

1. Whale Accumulation: Signs indicate that whales are accumulating the coin in anticipation of more gains. Data shows that whales have acquired over 240 million ADA coins in the past week, bringing the total value to over $182 million. This purchasing trend appears to be gaining momentum.

2. Spot ETF Approval: Cardano could benefit from the likely approval of a spot ADA exchange-traded fund by the Securities and Exchange Commission. Grayscale Tuttle Capital Management has already submitted applications. An ADA fund could lead to increased inflows from institutional investors.

3. Increased Staking: More investors are staking their Cardano coins, signaling long-term intentions. The staking market cap has jumped by 8.1% to $16.1 billion, while the yield stands at 2.60%.

Technical Analysis

The ADA price is currently in the second phase of the Elliott Wave pattern, characterized by a brief pullback followed by a bullish wave. It is likely poised to enter the third wave, potentially pushing the price to the psychological level of $2, which aligns with the 38.2% retracement level, representing a 160% increase from the current price.

Cardano remains above the 50-week Exponential Moving Average and is forming a bullish flag pattern, a bullish continuation signal comprising a vertical line and a flag-like consolidation. However, this prediction relies on the weekly chart, meaning the pattern may take time to fully develop. The flag section has already taken more than three months to form.

Conclusion

In summary, Cardano’s price movements and potential catalysts such as whale accumulation, ETF prospects, and increased staking indicate a cautious optimism about the coin’s future performance.