Cardano Price Surges 7% as Breakout Targets $0.635 Despite SEC ETF Uncertainty
Cardano (ADA) gained over 7% in 24 hours, rising to $0.601, despite U.S. regulatory headlines stirring uncertainty. On Thursday...
Quick overview
- Cardano (ADA) rose over 7% to $0.601 despite U.S. regulatory uncertainty surrounding ETF approvals.
- The cryptocurrency's resilience is attributed to a new U.S.–Vietnam trade agreement that boosted global risk appetite.
- Derivatives data indicates a bullish sentiment, with a long-to-short ratio of 1.10 and open interest increasing by 7.04%.
- Technically, ADA has broken out of a symmetrical triangle, with targets set at $0.618, $0.635, and a stretch target of $0.654.
Cardano (ADA) gained over 7% in 24 hours, rising to $0.601, despite U.S. regulatory headlines stirring uncertainty. On Thursday, the U.S. SEC abruptly halted the approval process for Grayscale’s Digital Large Cap (GDLC) ETF conversion, citing the need for additional review. ADA comprises 0.78% of GDLC’s $774 million portfolio, making it sensitive to ETF-linked sentiment.
Yet, ADA held firm, riding a broader wave of optimism following news of a new U.S.–Vietnam trade agreement, which boosted global appetite for risk assets. Cardano’s resilience near key resistance zones reflects growing investor conviction in its long-term fundamentals, even amid near-term ETF turbulence.
Derivatives Market Turns Decisively Bullish
Momentum isn’t just limited to spot markets. Derivatives data from Coinglass suggests that traders are positioning for further upside.
- Long-to-Short Ratio: Hit 1.10, the highest in over a month
- Open Interest: Up 7.04% to $861.5 million in the past 24 hours
- Volume Surge: Increased buying activity confirms breakout momentum
These changes in positioning signal confidence that ADA’s rally may extend, with fresh capital entering futures markets as traders lean into the bullish structure.
Technical Breakout Points to Higher Targets
From a technical analysis perspective, ADA has broken out of a symmetrical triangle, which had constrained price action for much of the past three weeks. The breakout—confirmed by a bullish engulfing candle—also pushed price above the 50-period EMA at $0.5705, reinforcing bullish sentiment.
Momentum Signals Align:
- MACD has crossed above zero with rising histogram bars
- Higher lows continue to build a positive trend structure
- Price holds above both trendline and EMA support
ADA now trades around $0.601, facing nearby resistance at $0.618 and $0.635. If those levels break, the next target lies at $0.654, where a prior rally stalled.
Trade Setup for New Traders
Buy Entry: On retest of $0.581 support or breakout above $0.605
Stop-Loss: Below $0.570
Target 1: $0.618
Target 2: $0.635
Stretch Target: $0.654
Bottom Line
Despite ETF-related uncertainty, Cardano has proven technically and fundamentally resilient. With bullish positioning in futures, a confirmed breakout pattern, and macro tailwinds, ADA is well-positioned for further gains, provided it holds above the $0.57–$0.58 zone.
Traders should monitor volume closely on any move above $0.605 for confirmation, as ADA attempts to break through its next resistance and extend toward $0.635–$0.654.
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