Cardano (ADA) Soars 11% In The Last Week, More Rallies Ahead?June 26, 2023
Cardano’s (ADA) price has scored over 10% on the weekly chart as the broader market sees a correction. Most coins registered unexpected price surges amid the resurgent crypto market last week. However, ADA, the native token of the Cardano blockchain, stood out among the digital tokens with a notable price surge over five consecutive days of the rally.
With a 20% increase on last week’s Monday trading session, ADA’s price spiked above $0.30. Although the ongoing market correction has stalled the token’s price rally, it still retains a 10.57% price increase.
ADA’s Recent Price Performance
The increased number of ADA transactions captured over the last month by Cardano Blockchain data hasn’t significantly affected the token’s price. Hence, ADA’s price elevation over the past few days seems more connected to external factors than development events on the Cardano network.
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Fortunately, the recent market movements driven by the increasing institutional interest in Bitcoin coincided with ADA’s price trajectory. Most of the buzz generated in the market came from the news of BlackRock’s spot BTC ETF application, followed by WisdomTree, Invesco, and Volatility Shares’ ETF filings.
Interestingly, observers perceive Cardano (ADA)’s price recent rally as part of the broader market dynamics triggered by the rising institutional attention on Bitcoin and crypto. As of Sunday, June 25, ADA traded at $0.29, a 2.67% price gain from its previous day’s valuation.
ADA Price Outlook
After the notable price increase in the past few days, the bulls have taken a break as the bullish momentum stalls. As of the time of writing, Cardano’s (ADA) price has tumbled 2.74% from its past-day price and now trades at $0.288.
ADA has reclaimed $0.288 as its primary support level after the bulls failed to push the price higher. The pullback may be considered a typical occurrence given the rapid price surge in the last week. The token’s trading volume slumped slightly over the weekend, with a 24-hour decline of 25.45%. ADA’s market capitalization has declined by 2.80% and is at $10 billion at press time.
Also, ADA/USD Price Chart on TradingView shows the coin is trading below the 50-day and 200-day Simple Moving Averages, signifying a bearish trend in the short and long term. As of the time of analysis, the bulls are losing control, and the bears could take back control of the market once the price relapses deeper.
A Spot ETF Approval Could Affect ADA Price
It is worth keeping a close watch on how external market events could influence ADA’s price and investor optimism. Moreover, market participants should watch how the expected changes in the crypto space following the BTC ETF approval would impact crypto asset prices, including ADA’s.
The SEC approving the series of ETF applications would boost Bitcoin’s legitimacy. Also, it would attract more institutional investors who want leveraged exposure to Bitcoin through various investment products that would eventually be available. This improved investor sentiment could rub off on ADA and other cryptocurrencies, propelling their prices upward.
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