Cardano (ADA) is showing signs of a potential breakout as trading activity and ETF speculation fuel bullish sentiment across the market.
Cardano Price Targets $1.17 Amid Rising Volume and ETF Hype
Cardano is currently trading at $0.70, up nearly 40% from its April low. This steady price recovery has pushed ADA above key support levels, and analysts are pointing to a breakout in May if momentum continues.
Trading volume has been particularly strong, with ADA spot trades hitting $700 million on Thursday according to Coinglass. On April 25, volume spiked past $1 billion, reflecting heightened demand and active market participation. This surge in volume—paired with rising prices—often signals that more buyers are entering the market than sellers, a strong bullish indicator.
In the futures market, open interest has climbed to $782 million, significantly higher than the $576 million low seen in April. A funding rate of 0.65% shows that traders are betting on price increases and are willing to pay to keep their long positions open.
Technical analysis adds to the optimism. ADA recently broke out of a falling wedge pattern and confirmed a bullish inverse head and shoulders formation on its daily chart. If the current momentum continues, the next major resistance levels lie at $0.81, $1.17, and potentially $1.30.
Meanwhile, speculation over a Cardano ETF is intensifying. Bloomberg analysts have raised the odds of ADA receiving its own U.S. spot ETF to 75%, a move that could dramatically reshape investor sentiment and institutional adoption.
Still, some challenges remain. ADA has yet to reclaim its March highs, and on each approach to the $0.70 level, profit-taking has slowed momentum. Santiment data also shows a rise in the NVT ratio, indicating a high valuation relative to transaction activity—often a sign of overbought conditions.
While the outlook is promising, ADA’s next move will depend on sustained volume, market sentiment, and whether ETF approval speculation turns into regulatory action.
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