Cardano Price Eyes $1.32 Breakout as ETF Approval Odds Reach 63%

Cardano (ADA) price shows signs of a potential price breakout as the odds of a spot Cardano exchange-traded fund (ETF) gaining approval from the U.S. Securities and Exchange Commission (SEC) have risen to 63%.

This increase in approval probability comes amid notable whale purchases and a technical setup that may lead to a 75% rally in ADA’s price. The combination of rising institutional interest and favorable chart patterns signals renewed focus on Cardano’s market performance.

Increased Institutional Interest and ETF Approval Odds

The probability of the SEC approving a Cardano spot ETF has increased from 56% to 63% in the past day, according to Polymarket data. This rise reflects growing investor confidence in regulatory approval occurring within the year.

Currently, Grayscale is the only firm with an official filing for a spot Cardano ETF with the SEC. The commission acknowledged this product earlier in the year. Grayscale previously played a key role in securing approval for the first spot Bitcoin ETF in the U.S.

In addition, Swiss asset manager 21Shares offers an ADA exchange-traded product (ETP) managing over $72 million in assets. This demonstrates strong institutional interest in Cardano.

Technical Setup Suggests Possible Breakout For ADA

Cardano’s price has been trading within a descending triangle pattern in recent weeks. It recently tested resistance near the $0.91 level, which aligns with the 50% Fibonacci retracement. A clear breakout above this point could lead to a rise toward $1.32, marking a potential 75% gain.

Technical indicators back this possibility. The Directional Movement Index (DMI) shows the positive directional index (+DI) moving above the negative directional index (-DI), indicating growing bullish momentum. However, the Average Directional Index (ADX) is declining, which suggests the overall trend remains weak.

If Cardano breaks out of the triangle on the weekly chart, it could signal a change from a bearish to a bullish long-term trend. This would be a key development for ADA’s price direction.

Market Activity Shows Whale Accumulation

Data from Santiment shows that whales have bought more than 80 million ADA tokens in the last 48 hours. Large purchases like these often come before significant price movements. This surge in demand could create strong buying pressure, helping Cardano break through key resistance levels.

Despite a recent 3% drop in ADA’s price and its fall to ninth place in market capitalization rankings, whale accumulation indicates that some investors expect a price recovery. The activity of these large holders suggests confidence in ADA’s potential for growth.

This buying behavior also reflects growing optimism linked to the rising chances of a Cardano ETF approval by the SEC. Increased institutional interest and whale accumulation together support a more positive price outlook for Cardano.

Such factors may contribute to stabilizing ADA and potentially triggering an upward price movement soon.

Cardano Price Current Market Conditions and Outlook

Despite the market generally being bearish, there are signs that Cardano may rise in value. If the triangle breaks to the upside and there is more optimism about ETF approval, the price could experience a wild rally.

The point where the resistance level is $0.91 is significant. If the price holds above this point, there is a chance for Cardano to reach $1.32. On the other hand, bears may keep influencing the price action, as the decreased ADX signals.

Cardano’s price may move significantly when there are new announcements about the SEC’s decision on the Cardano ETF. When institutions grow interested in whale buying, the market may be influenced even further.

Regulators pay close attention to whether ADA will maintain its positive trend during a period of mixed indicators and changing rules.

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