After Grayscale’s announcement of applying for launching a Cardano ETF on February 11, Cardano has caught investors’ attention. Grayscale recently presented the Cardano ETF launch request, showing NYSE’s growing interest in financial entities. This indicates that Cardano may witness billions of dollars in liquidity inflow in the coming months. Bloomberg reported a 60% probability of Cardano ETF approvals, with investors considering March 27 as the first decision deadline by the SEC. Following Cardano’s price drop in December last year, major investors have gradually accumulated ADA, hoping for a repeat of history. Cardano’s daily chart from the past week suggests an accumulation phase similar to the one in 2019-2020 before the sharp price increase in 2021. Meanwhile, TapTools analyzed that ADA’s accumulation phase from 2022 closely resembles the previous uptrend in the weekly chart. Cardano is currently trading in the upper range of this accumulation zone, indicating a potential breakthrough of resistance and reaching the key psychological level of $1. On the other hand, Cardano’s Relative Strength Index (RSI) has increased from 44 to 55, indicating active ADA buying by traders and unsaturated buying at the time of writing. Santiment data also shows that the number of active Cardano addresses has gradually increased in the past week, and trading volume has grown, indicating network activity growth. Additionally, Cardano’s Plumin fork in decentralized governance has empowered token holders and strengthened its predicted growth. Ultimately, the potential approval of spot ETFs, historical patterns, and Plumin fork have increased the likelihood of breaking the $1 resistance and targeting the key resistance level of $3 for Cardano.
