After a strong rally last week, Cardano’s price has experienced a pullback for three consecutive days as the market cools off.
On Sunday, ADA slipped to a low of $0.70, down from its 2024 high of $0.747. Despite this decline, several bullish indicators suggest Cardano could surge by as much as 70 %, targeting a critical resistance level near $1.176.
Whale Accumulation Signals Confidence
The first major bullish factor is the noticeable accumulation of ADA by large holders, commonly referred to as whales. According to data from Santiment, addresses holding between 10 million and 100 million ADA now control approximately 35.5 % of the circulating supply – up from 33 % in January.
Similarly, the share of holders with balances between 1 million and 10 million ADA has risen to 15.83 %. This trend suggests that significant investors are positioning themselves for future gains, historically a strong bullish signal for cryptocurrencies.
Why Whale Activity Matters
Whale buying often precedes major price increases, as these investors typically have better access to market information and a longer-term investment horizon. Their increased exposure to ADA suggests strong confidence in the project’s prospects and could provide upward pressure on the price in the coming weeks.
Potential Boost from ADA ETF Approval and Bitcoin Integration
The second catalyst lies in upcoming regulatory developments and new technological integrations. The odds of a spot ADA Exchange-Traded Fund (ETF) approval have risen sharply, particularly after Paul Atkins was confirmed as the new Chair of the Securities and Exchange Commission (SEC).
According to prediction platform Polymarket, the probability of ADA ETF approval this year now stands at 55 %. The SEC is currently reviewing over 70 crypto-related ETFs, and under Atkins’ leadership, the likelihood of broader approvals has increased significantly.
Impact of ETF and Bitcoin Staking
Approval of an ADA ETF would open up Cardano to institutional investors, boosting liquidity and demand. Moreover, the potential introduction of Bitcoin staking on Cardano, facilitated by sidechains like Midnight and Midgard, could further enhance the platform’s utility.
Midnight aims to allow Bitcoin to be represented on Cardano while preserving privacy through zero-knowledge proofs. This safer alternative to centralized yield products, like those offered by now-defunct platforms such as Celsius, could attract significant interest from Bitcoin holders seeking new passive income streams.
Technical Setup Favors a Bullish Breakout
The third reason for optimism comes from Cardano’s technical chart patterns. ADA has recently formed a double-bottom pattern around the $0.510 support level, a classic bullish reversal signal indicating that sellers are struggling to push the price lower.
The neckline of this double bottom is at $1.176 – a level that corresponds with the May 3 high. A successful breakout above this neckline could confirm a major bullish reversal, setting the stage for a significant rally.
Additional Technical Indicators
ADA also sits near the 61.8 % Fibonacci Retracement level, often referred to as the “golden ratio” in technical analysis. This level typically acts as a strong support zone where prices frequently rebound.
Furthermore, Cardano appears to be forming a small bullish flag, another pattern suggesting that the current consolidation could resolve higher. If these patterns play out, a 70 % price increase toward $1.17 is well within reach.
Conclusion: A Confluence of Positive Signals
In summary, Cardano’s price outlook appears increasingly bullish based on:
- Strong accumulation by whale investors
- Growing optimism around ADA ETF approval and Bitcoin staking features
- Positive technical formations, including a double bottom and bullish flag
If these trends continue, Cardano could be poised for a major breakout in the coming weeks, potentially pushing its price toward the $1.176 target – around 70 % higher than current levels.
