Uniswap (uni) 
Cardano Price Outlook: Key Reasons ADA Could Surge by 70%
The Cardano price has seen a pullback over the past three days, following a strong surge last week. As of Sunday, the price of ADA dropped to $0.70, retreating from its year-to-date high of $0.747. Despite this short-term dip, there are compelling reasons to believe that Cardano could see a significant rally, potentially climbing by 70% to retest the key resistance level at $1.176. Below, we explore three critical factors driving this bullish outlook.
1. Increased Whale Activity in Cardano
One of the most notable bullish signals for Cardano is the growing accumulation of ADA by whales. According to recent data, addresses holding between 10 million and 100 million ADA coins now account for approximately 35.5% of the total circulating supply. This marks an increase from 33% in January, showing a clear trend of accumulation among large investors.
In addition, ADA holders with balances between 1 million and 10 million coins have increased their holdings to 15.83%. Historically, such whale activity is considered a strong bullish indicator, as it suggests confidence in future price gains. Unlike selling, accumulation by whales often precedes significant upward price movements.
2. Potential ADA ETF Approval and Bitcoin Staking Features
Another factor that could propel Cardano’s price higher is the growing likelihood of a spot ADA ETF being approved. The Securities and Exchange Commission (SEC) recently appointed Paul Atkins as its chair, which has increased optimism for crypto-focused ETFs. Current market odds suggest a 55% chance of ADA ETF approval this year.
The SEC is currently reviewing over 70 cryptocurrency-related ETF applications. Under new leadership, it is expected that several of these funds, including those with staking features, will gain approval. Such developments could drive institutional interest and broader adoption of ADA.
Additionally, Cardano is working on integrating Bitcoin staking through its ecosystem. This functionality will be enabled by Cardano’s sidechains, such as Midnight and Midgard. Midnight, in particular, facilitates Bitcoin representation on Cardano while ensuring transaction privacy. By leveraging zero-knowledge proofs, this approach offers a safer alternative to centralized platforms like Celsius, which collapsed in 2022. These innovations could attract more investors to the Cardano network.
3. Bullish Technical Patterns Emerging
From a technical analysis perspective, Cardano’s price chart reveals a bullish setup. ADA has formed a double-bottom pattern around the $0.510 level, a formation often associated with potential trend reversals. The neckline for this pattern is positioned at $1.176, the high reached on May 3.
Moreover, the coin is currently hovering near the 61.8% Fibonacci Retracement level, commonly referred to as the “golden ratio.” This level is known for triggering rebounds in asset prices. Additionally, ADA has developed a small bullish flag pattern, further supporting the case for a potential breakout.
A double-bottom pattern and Fibonacci retracement levels often signal strong bullish momentum, making the $1.176 target plausible in the coming weeks.
Based on these technical indicators, there is a high likelihood that Cardano could experience a rally, with bulls targeting the double-bottom’s neckline at $1.176. This would represent a 70% increase from its current price.
Final Thoughts
Cardano’s current market dynamics suggest a promising outlook for the cryptocurrency. Increased whale accumulation, the potential approval of an ADA ETF, Bitcoin staking capabilities, and bullish technical patterns all point to significant upside potential. While the market remains volatile, these factors present a compelling case for investors keeping a close eye on ADA’s price movements in the weeks ahead.
