Cardano Set to Explode: 3 Shocking Reasons It Could Soar 50%!

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For the third day in a row, the cost of Cardano increased, aligning with the persistent recovery in the cryptocurrency market. This growth led to an overall market capitalization of all cryptocurrencies reaching an impressive $3.7 trillion.

– Cardano’s price soared to a peak of $1.10, marking its highest point since January 7th, and has now risen an impressive 43% above its December lows. The digital currency’s market capitalization presently amounts to approximately $35 billion.
– Three key factors suggest that Cardano (ADA) could potentially surge by as much as 50% in the near future.

Cardano potential ecosystem growth

As a cryptocurrency investor, I’ve noticed that while Cardano (ADA) is making steady progress, it’s been lagging behind coins like Sui and Solana due to the relatively smaller scale of its ecosystem compared to these two. At present, Cardano boasts just 34 decentralized finance (DeFi) applications, with a total value locked (TVL) of approximately $553 million. This underscores the potential growth opportunities that lie ahead for this promising coin as it continues to develop and expand its DeFi landscape.

Among the major decentralized exchanges within the Cardano network, Minswap deals with a trading volume of under $10 million per day. On the other hand, Raydium on the Solana blockchain manages transactions worth more than $2 billion every day.

This year might witness considerable expansion in the Cardano ecosystem, fueled by the anticipated integration with BitcoinOS and the launch of Midnight ZK. The integration with Bitcoin could potentially tap into over $1 trillion worth of assets for Cardano. Additionally, Midnight, a zero-knowledge scaling platform, may entice more developers to join the ecosystem.

Furthermore, the emergence of meme coin creators might stimulate an increase in Cardano’s transaction volume and overall community engagement, enhancing its ecosystem’s vitality.

ADA ETF approval

As a researcher, I believe that one significant factor contributing to the potential surge in Cardano’s price could be the SEC’s approval of Exchange-Traded Funds (ETFs). This approval might open up new avenues for investors to access Cardano, thereby potentially increasing its demand and driving price growth.

Market participants, particularly those on Polymarket, believe that regulatory bodies such as the SEC are likely to greenlight multiple Exchange-Traded Funds (ETFs) linked to Ripple (XRP) and Solana (SOL). Analysts from JPMorgan predict a significant influx of funds, potentially totaling billions, into these ETFs.

If the given ETF approvals are successful, it opens up the potential for an ADA-focused ETF to also be approved. Given that Cardano is a significant American cryptocurrency project with a market value over $35 billion, this potential approval could significantly benefit Cardano. The creation of an ADA ETF might draw in more institutional investment, potentially pushing up its price.

Cardano price has strong technicals

To summarize, the technical signs from ADA indicate a possible substantial increase in its value as the current cryptocurrency market rally continues.

As an analyst, I’ve noticed that the daily chart shows Cardano has developed a bullish flag pattern. This pattern is characterized by a long flagpole followed by a rectangle consolidation. Historically, these types of patterns have led to significant bullish breakouts, similar to what we saw recently with XRP, which formed a bullish pennant.

Cardano, too, has created an upside-down “head and shoulders” formation, which is often seen as a bullish reversal signal. Additionally, it has exhibited a “break-and-retest” pattern, revisiting $0.810 – the peak it reached in March of last year.

The digital currency is being sustained by both its 50-day and 100-day average lines, while the MVRV ratio stays at 2.5. Generally, the MVRV indicator helps determine if a currency is underpriced or overpriced. A MVRV score of 3.5 implies that the asset continues to be considered undervalued.

Consequently, ADA’s value might surge by approximately 50% from its present position, potentially reaching around $1.60. This value corresponds to the halfway point or retracement level on the weekly graph.

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2025-01-16 18:57