While the broader cryptocurrency market struggles,
Cardano’s ADA is among the top-performing altcoins. At the time of this
publication, Cardano’s ADA traded for 0.8035, representing a 3% and 14% decline
in the past day and week, respectively.
On the other hand, Bitcoin was down 1%, while the second-largest digital asset, Ethereum, gained 1.84% in the same period, according to CoinMarketCap data.
The
market is now anticipating that this could be the beginning of a larger rally, and the price could soar as high as $1 in the coming weeks. However, such optimistic targets depend on key
developments, including the potential approval of a spot Cardano ETF in the
United States.
Will ADA Hit $1 Soon?
Technical analysts tracking ADA’s price action see
promising signs of continued upside. Such a surge would require Cardano’s
market capitalization to exceed $350 billion, a massive leap from its current
valuation of under $30 billion.
Adding to the optimism, crypto asset manager Grayscale
has filed for a spot Cardano ETF with the New York Stock Exchange. If approved,
the ETF would provide institutional and retail investors with a regulated way
to gain exposure to ADA without directly holding the asset.
The SEC’s stance on crypto ETFs has been evolving,
with industry insiders noting that the regulator’s new leadership appears more
receptive to digital asset investment products.
ADA Jumps 14% on ETF News
The token hit an intraday high of $0.80, though it
remains 17% below its January peak of $1.16. Despite recent volatility, ADA has
surged 140% over the past six months. Many analysts believe that if the SEC
approves Grayscale’s ETF application, ADA could sustain its bullish trajectory.
The broader spot crypto ETF market has experienced
mixed performance in February. Spot Bitcoin ETFs have seen both inflows and
outflows, with Fidelity’s FBTC and Grayscale’s GBTC experiencing significant
withdrawals.
Meanwhile, spot Ethereum ETFs have shown resilience,
recording only one day of outflows this month. For Cardano, the path ahead
remains uncertain, but growing institutional interest and strong technical
indicators suggest that ADA could continue to outperform. Whether it can reach $1 soon or even $10 by 2025 will depend on market conditions and regulatory approvals in the coming months.
This article was written by Jared Kirui at www.financemagnates.com.
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