Cardano (ADA) has been stuck in a tight trading range for the past couple of weeks as traders watch for the next big market catalyst. ADA now sells for $0.760 after dropping 43% down from its peak set in December last year.
The market indicators point to ADA’s upcoming expansion and project a price rise towards $2 during the following months. A major Cardano price rally may come from increased investments by big market investors known as whales.
Data records show that whales bought 240 million ADA coins during the last week which resulted in a purchase value of $182 million. Many professional traders now hold more ADA coins because they expect the token might increase in value.
SEC Approval Could Boost Cardano Prices
The approval of a U.S. Securities and Exchange Commission SEC sanctioned spot ADA exchange-traded fund (ETF) creates a significant force to push ADA prices higher.
The SEC approval of an ADA ETF application has already been filed by Grayscale and Tuttle Capital Management and it would likely bring substantial institutional investment. Price performance in the crypto market has generally risen when new ETFs receive approval especially following Bitcoin’s ETF approvals.
Many investors show their support for Cardano by investing and locking their ADA coins. Investors have driven the staking market cap up 8.1% to $16.1 billion and earn 2.60% returns. Investor loyalty toward keeping ADA long-term reduces supply availability thereby strengthening its market value.
Cardano sits in the middle portion of an Elliott Wave pattern according to its technical market evaluation. Following this dip in value the price moves mainly in the upward direction throughout the third wave trend. ADA has finished its price range restriction phase and might begin an upward move that might lead to $2 as market experts predict.
ADA Trades Above Key Moving Averages
The market shows positive signs because ADA trades above its long-term average moving average lines while creating a bullish flag formation. A clear movement up accompanied by a time of stability usually leads ADA to break through its present movement. The price rally may face delay due to the consolidation phase lasting more than three months.
Various market indicators show ADA may soon reach a higher value although traders see the price remaining low at this moment. Multiple indicators such as whale buying and ETF investment help drive more people into staking activities which creates strong upward pricing trends in Cardano.
If market fundamentals support ADA’s performance it can achieve the important $2 target which gives potential buyers a 160% return opportunity. The market trends remain unpredictable so investors need to monitor external impacts on price activity.