Can Cardano (ADA) Reach $1 Due to ETF Speculation and Large Holdings?
is that during two spikes in the ADA’s Spent Coins Age, in early April and mid-June, there were no major price increases for ADA. This suggests that the selling of older coins during those periods was not aimed at making a profit, indicating a lack of eager sellers who want to offload their tokens.
Bloomberg analysts James Seyffart and Eric Balchunas raised their confidence levels to 90% in the approval of a US spot Cardano ETF by the SEC in 2025. They noted an increase in communications between the SEC, which is usually seen as a positive sign. Grayscale, well-known for its Bitcoin and Ethereum ETFs, has filed for a Cardano-backed investment vehicle that could launch in the United States by year-end. The regulatory environment for digital assets on permissionless blockchains has become more favorable, with guidelines categorizing them as commodities rather than securities.
Grayscale has shown increased bullishness towards ADA by adding it to two of its publicly traded crypto funds, the Grayscale Digital Large Cap Fund and the Grayscale Smart Contract Fund. ADA holds a substantial 0.88% weight in the GDLC, with Cardano being the third-largest asset in the Grayscale Smart Contract Fund, ranked just below Ethereum and Solana. ADA’s price performance has been strong, along with XRP and BTC, with a gain of 29% in value over the past week.
While ADA currently trades just above the 0.618 Fibonacci level at $0.72, the next significant challenge is breaking through the resistance zone between $0.77 and $0.78. If successful, ADA could target the $0.86 level and potentially reach $1.08, resulting in a 46% increase from its current price. With whales accumulating more ADA, institutional interest growing, and high odds of an SEC-approved ETF, the prospects of ADA reaching $1.08 look promising. However, traders should monitor the $0.72 support level, as a drop below it could lead to a retest of the $0.68 support, dampening the bullish sentiment.
As of the latest update, Cardano (ADA) is trading at $0.7405, up 2.25% in the last 24 hours.
