Cardano price gears up for a 55% jump with ADA ETF decision looming

Cardano price is eying a major bullish breakout as a key deadline for the Grayscale ADA ETF nears. 

Cardano (ADA) was trading at $0.862 on Aug. 28, up by nearly 70% from its lowest level this year. 

ADA ETF odds jump ahead of key deadline

Cardano token could jump in the coming weeks as Polymarket data shows that the odds that the Securities and Exchange Commission will approve Grayscale’s ADA ETF this year. 

The poll, which has almost $400,000 in assets, places the odds of this approval at 83%, its highest level since July 11. It has jumped from a low of 42% in June. 

The SEC has set the final deadline for the Grayscale ADA ETF at October 27. After several delays, the agency will likely approve the fund since Cardano is a mainstream cryptocurrency similar to Ethereum. It is also a highly liquid token with a daily volume of over $1.3 billion. 

An ADA ETF approval would be bullish because it would lead to more purchases by American investors. Recent data shows that there is a strong demand for cryptocurrency ETFs. 

SoSoValue data shows that spot Bitcoin ETFs have had cumulative inflows worth $54 billion, while Ethereum (ETH) funds have added $13.6 billion in inflows since their inception. 

Cardano’s price has other potential catalysts that may drive it higher in the coming months. For example, Charles Hoskinson has hinted at a partnership with Ripple (XRP). 

Also, its developers are working on Midnight, a sidechain that could be launched later this year. The Glacier airdrop, where Cardano holders receive NIGHT tokens, is ongoing. 

Cardano price technical analysis

Another bullish catalyst for ADA price is its strong technicals, which may push it higher in the long term. The daily timeframe chart shows that the Cardano token formed a double-bottom pattern at $0.516, its lowest level in April and June this year. Its neckline was at $0.850, which it has retested. 

Cardano price has also formed a golden cross pattern, as the 50-day and 200-day moving averages have crossed each other. It is also in the process of creating a bullish flag pattern, which happens when an asset forms a vertical line followed by a descending channel. 

Therefore, the token will likely have a strong bullish breakout to $1.325, its highest point in November, and a 56% jump from the current level.