Investors are closely watching Cardano [ADA] following the news of Grayscale’s application for a Cardano Spot ETF on February 11th.
At the time of writing, ADA was priced at $0.7990, experiencing a 3.6% increase in trading volume over the past 24 hours and a 12% rise in the previous week, as reported by CoinMarketCap.
Accumulation by Large Investors & Interest in Spot ETF
Grayscale’s recent filing for a Cardano ETF, combined with the growing interest from institutions on the NYSE, hints at the possibility of Cardano attracting significant liquidity inflows in the coming months.
According to Bloomberg, the odds of Cardano ETF approval now stand at 60%, while investors are closely monitoring the SEC’s decision by March 27, which marks the initial deadline for approval, rejection, or extension.
Despite a drop in Cardano’s price last December, major investors have been steadily accumulating ADA, even during price consolidation, in the hopes of a similar market pattern repeating itself.
Analysis of Technical Indicators & Historical Trends
A look at the daily chart reveals a bullish trend for Cardano in the past week, marked by higher highs, signaling a potential uptrend formation.
The current price movements mimic Cardano’s accumulation phase between 2019 and 2020 before the massive bull run in 2021.
Based on insights shared by TapTools on social media platform X (previously known as Twitter), the accumulation phase of ADA since 2022 aligns with the previous bull run, especially when viewed on a weekly chart.
Cardano has been hovering at the upper end of this accumulation range, indicating a possible breakout towards the significant psychological level of $1.
Exploring On-Chain Data Insights
Cardano’s Relative Strength Index (RSI) has climbed from 44 to 55, as per data from CryptoWaves, suggesting active buying of ADA without it being deemed overbought at the current time.
Data from Santiment indicates a gradual increase in active wallet addresses for ADA over the past week, alongside a rise in trading volume, indicating a growing network activity.
Exchange signals data reflects a primarily bullish sentiment in the market, showcasing a rising belief among investors in Cardano’s future prospects.
The recent Plomin hard fork on decentralized governance in Cardano empowered token holders, further fueling expectations for its future growth.
With the anticipated approvals for spot ETFs, historical trends, and developments like the Plomin hard fork, there is a strong potential for Cardano to break past the key psychological level of $1 and potentially target the resistance level of $3 in a subsequent bull rally. These factors significantly increase the likelihood of a bullish rally for Cardano in the weeks to come.