Recent price fluctuations of Cardano (ADA) have drawn attention from analysts and traders due to strong recovery following a dip below $0.70.
Cardano Recovers After Drop
In April, ADA's price fell below $0.70, which was perceived by many traders as a bearish signal. However, the drop proved to be short-lived, and the price quickly rebounded, indicating a downside fakeout. According to analysis by TradingView chartists, ADA broke out of a falling wedge pattern and completed an inverse head and shoulders formation on the daily chart. This recovery coincided with rising trading volume, consistently exceeding $700 million in recent weeks, peaking above $1 billion on April 25.
ETF Optimism and Technical Upgrades
After its rebound, ADA tested the upper boundary of its previous wedge pattern. This move raised speculation that the previous rise might have been an upside fakeout. Nevertheless, positive signals continue to emerge from both institutional and retail fronts. According to Bloomberg analysts, there is now a 75% chance that a Cardano ETF will be approved, supporting expectations for institutional adoption in 2025. Meanwhile, the upcoming LAOS upgrade is expected to enhance transaction efficiency, further solidifying the project's technical strength.
Future Prospects for Cardano
Cardano is integrating Bitcoin through its Babel fee system, allowing BTC transaction fees. These upgrades and partnerships could help ADA maintain its recent gains and aim for a breakout toward $1.17.
The recovery of ADA's price following short-term drops coupled with growing optimism around ETFs and technical upgrades sets a positive outlook for the cryptocurrency's future.
