Cardano price continued its strong rebound today, Sept. 9, reaching its highest point since August. Technicals point to further gains in the coming week as the deadline for ADA ETF approval approaches.
Summary
- Cardano price could rise by 20% in the coming weeks.
- The SEC will deliver its decision on ADA ETF in October.
- ADA will likely rise to towards the approval date.
Cardano (ADA) rose to $0.90, up 13% from its lowest level this year, bringing its market capitalization to over $31.7 billion. Its daily volume rose to over $1.7 billion, a sign of robust demand.
Cardano price technical analysis points to a 20% jump
The eight-hour time frame chart points to more gains, potentially to $1.0640. It has formed a falling wedge chart pattern, which is characterized by two descending and converging trendlines.
The two lines are nearing confluence, which explains why it has already made a bullish breakout above the upper trendline. The price target in a falling wedge pattern is estimated by first measuring the distance of the widest part.
After this, one measures the same distance from the breakout point. In this case, this means that the coin will likely experience a bullish breakout, potentially reaching $1.0640, which is approximately 21% above the current level.
This price target is a few points above the extreme overshoot of the Murrey Math Lines tool. The bullish ADA price forecast will become invalid if it crashes below the strong pivot reverse point at $0.8300.
ADA ETF approval is the main catalyst
The main reason why the Cardano price will surge is that the Securities and Exchange Commission has set October 22nd as the deadline for the approval of the Grayscale ADA ETF.
Polymarket data shows that the odds that the agency will approve this fund have jumped to 87%, a few points below the all-time high of 89%.
The odds of approval are largely due to Cardano being a well-known, Made-in-America coin with utility. Like Ethereum (ETH), it is a proof-of-stake coin that acts as the foundation of building decentralized applications.
Cardano is a large-cap coin with a market cap of $31 billion and is highly liquid. Therefore, the coin will likely continue rising toward the ETF approval and then pull back afterward, as Cardano ETFs will likely not attract substantial inflows initially.
