Key Insights
- Cardano price is inching near a golden cross, a signal that tends to come before bullish explosions.
- ADA has formed bullish patterns in the charts and is consolidating near major resistance.
- Grayscale has registered a Cardano Trust ETF, which means that institutional demand could be about to rise.
Cardano price is near a technical setup that could mark the start of strong bullishness. Analysts watch as the 50-day SMA crosses above the 200-day SMA on the daily chart. This formation is known as a golden cross, and tends to come before a bullish takeover.
Current Cardano Price Performance
At the time of writing, ADA was trading around $0.7919. The asset is gaining strength alongside the general crypto market recovery.
Also, recent inflation data in the United States acted as a temporary source of comfort to investors on Tuesday. Investors now seem optimistic about a possible Federal Reserve interest rate cut next month.
If confirmed, this golden cross could fuel a massive rally for the Cardano price. This is because the asset last experienced this pattern in November. At that time, prices jumped from $0.325 to $1.32 in less than a month.
This stands as a gain of over 300%. If history repeats, a similar percentage increase from current levels could open up a target of $3.25 for ADA.
Cardano’s Double Bottom & Surging Futures Hint Breakout Toward $1.50
Cardano price has recently printed a double bottom pattern after touching $0.51 twice in April and June. This formation has historically come before reversals, and has already helped the price reach $0.935 in July.
ADA is now consolidating below the $0.80 to $0.85 resistance zone at the time of writing. Technical indicators add weight to this bullish case because the MACD has flipped positive.
On the other hand, ADA futures have surged to nearly $1.80 billion, which is an all-time high. According to on-chain data from TapTools, funding rates for ADA long positions have also reached new highs. This shows that traders pay a premium to hold on to their bullish bets.
In other words, Cardano price may break above $0.92. Analysts believe the Cardano price could quickly exceed $1 and test $1.12 or higher. Some predictions even point to $1.20 as the next resistance for the cryptocurrency. It could hit $1.50 if momentum builds.
Institutional Interest Grows with Cardano ETF Filing
Grayscale Investments has taken steps that could bring Cardano into the ETF market. Grayscale registered the Cardano Trust ETF on August 12 in Delaware. This move marks its expansion into altcoin ETFs following the success of its Bitcoin and Ether funds.
The registration comes from Grayscale’s previous process for other crypto trusts. It may come before a formal filing with the US Securities and Exchange Commission (SEC).
Earlier this year, the SEC acknowledged NYSE Arca’s submission for a proposed spot Cardano ETF. This marked the first step in the regulatory review process.
Institutional products like a Cardano ETF are expected to open the door for new capital inflows. These inflows, especially, can be seen from investors who prefer regulated exposure to ADA without directly holding the token.
What a Golden Cross Could Mean for the Cardano Price
A golden cross happens when a short-term moving average rises above a long-term moving average. Technical analysis shows that the trend is turning from bearish to bullish for the Cardano price.
Cardano’s golden cross comes after months of accumulation and recovery from lows earlier in the year. This means that if the pattern confirms, it could trigger some strong buying and add fuel to the ADA rally.
Previous golden crosses in the crypto market have sometimes led to extended gains. This is primarily when strong fundamentals and market sentiment support them.
Institutional inflows into ADA have reached $73 million this year, signaling growing confidence in Cardano’s long-term potential. Combined with bullish setups in the derivatives market, the Cardano price may enter a critical phase of price action.
