Cardano Eyes $0.45 Breakout Following 5% Gain: Can ADA Maintain Momentum Amid 300% ETP Inflows Surge?
Cardano price recovers after last week's slump. ETP fund inflows see a 300% surge with ADA price having a bullish outlook.
Key Takeaways
- Cardano saw a 300% increase in ETP inflows.
- ADA price rebounds after breaking the descending channel.
- A potential upside above $0.50 confirms a bullish trend.
Cardano (ADA) experienced a sharp 14% decline last Thursday, July 25, plummeting to a low of $0.38 from its previous high of $0.45.
This sudden drop broke through the confines of its descending channel, initially suggesting a prolonged downward trend.
However, in a surprising reversal, ADA has since swiftly regained 12%, now stabilizing above the crucial $0.40 mark. Building on this momentum, the price surged an additional 5% today, sparking hopes of a sustained upward trajectory.
Cardano ETPs Inflows Soar
The latest CoinShares weekly report reveals $245 million was added to crypto-related ETFs last week.
Cardano saw a significant increase in inflows into its ETPs, totaling $1.2 million last week—a 300% increase from the previous week.
This strong performance placed Cardano second among all crypto ETPs. Since the beginning of 2024, traditional investors have invested $11 million into Cardano-oriented products.
ADA Price Analysis
Following its peak of $0.80 on March 14, Cardano’s price has been undergoing a corrective phase, significantly declining to $0.32 on July 5.
As illustrated in the chart, this low coincided with the apex of a descending triangle, a technical pattern that often precedes a reversal. Soon after, a subsequent bounce ensued, propelling the price 42% higher to $0.45 on July 16.
However, this uptick was short-lived, and the price retreated to $0.38 on July 25. From a technical standpoint, we had anticipated this pullback as a corrective wave 2, part of a larger five-wave impulse to the upside. Today’s rebound reinforces this interpretation, but a decisive break above the $0.50 area would provide the most convincing confirmation of a larger, impending rally.
ADA Price Prediction
Cardano‘s price action on the hourly chart shows three waves, followed by a break below the descending channel. Since the price fell to its 0.5 Fibonacci level, it is deep enough to indicate the completion of its corrective stage.
In that case, the rise since July 25 would be its next major upward advancement, but there is still a chance ADA could make another lower low to the 0.618 Fib level at $0.37. The price is kept below $0.427, and its surpassing will confirm the bullish outlook, while rejection would be a bearish one.
Either way, the next upward move is expected to be stronger than the one from July 5 to 16, leading ADA to values above $0.70.
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