Cardano price has retreated in the last three consecutive days as last week’s surge took a breather.
Cardano (ADA) dropped to a low of $0.70 on Sunday, down from the year-to-date high of $0.747. This article explores the top three reasons why the coin may jump by 70% and retest the key resistance level at $1.176.
1. Cardano whales are buying
The first bullish catalyst that may push the Cardano price higher is that whales are accumulating the coin.
Santiment data shows that addresses holding between 10 million and 100 million ADA coins now account for about 35.5% of all coins in circulation, up from 33% in January.
Meanwhile, ADA holders with balances between 1 million and 10 million have risen to 15.83%. This whale activity suggests that major investors are anticipating further gains. Historically, whale accumulation has been a strong bullish signal for cryptocurrencies.
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2. ADA ETF approval and Bitcoin staking feature
Cardano price could benefit significantly from the potential approval of a spot ADA ETF. The odds have risen following the confirmation of Paul Atkins as the new Securities and Exchange Commission (SEC) chair. According to Polymarket, the chance of ADA ETF approval this year has jumped to 55%.
The SEC is reviewing over 70 crypto-related ETFs, and under Atkins’ leadership, approvals could accelerate. This includes the possibility of staking-enabled ETFs, which would allow investors to earn returns from their holdings.
Furthermore, Cardano’s plans to integrate Bitcoin staking through its sidechains, like Midnight and Midgard, could open new doors for Bitcoin holders to stake securely via zero-knowledge proofs, enhancing Cardano’s attractiveness.
3. Cardano price has double-bottomed
Another strong reason for optimism is the technical setup. ADA has formed a double-bottom pattern at $0.510, a classic bullish reversal sign. Its neckline sits at $1.176, marking a potential 70% upside from current levels.
Additionally, Cardano hovers near the 61.8% Fibonacci Retracement level, known as the “golden ratio,” a common area for price rebounds. A small bullish flag pattern has also formed, further strengthening the bullish case.
Therefore, the Cardano price will likely have a bullish breakout in the coming weeks as bulls aim for the $1.17 target.
