The price of Cardano has been relatively stable over the last few weeks as traders look for the next significant event.
Cardano (ADA) is currently trading at $0.760, which is a 43% decrease from its peak in December of the previous year. This month, it has lagged behind other popular cryptocurrencies such as Mantra (OM) and Cronos (CRO).
There are three key factors that could drive Cardano to $2 in the upcoming months. Firstly, indications suggest that large investors, often referred to as whales, are accumulating the coin in anticipation of future gains. Recent data reveals that whales have purchased over 240 million ADA tokens within the past week, amounting to more than $182 million. This trend of whale buying seems to be gaining traction.
Secondly, Cardano may find an advantage from the potential approval of a spot ADA exchange-traded fund by regulatory authorities. Grayscale Tuttle Capital Management has already put in their applications.
An ADA fund could significantly benefit the cryptocurrency, possibly resulting in increased investments from institutional players.
Lastly, recent data indicates that a growing number of investors are staking their Cardano coins, which suggests a long-term holding strategy. The total market cap for staking has increased by 8.1% to $16.1 billion, with a yield of 2.60%.
Technical Analysis of Cardano’s Price
Another influencing factor for ADA’s price is that it appears to be in the second stage of the Elliott Wave pattern. This stage is marked by a short retracement, after which the third bullish wave typically follows—often the longest phase.
It seems that Cardano has wrapped up the second phase and is ready to transition into the third wave, which could elevate its price to the psychological benchmark of $2. This goal coincides with the 38.2% retracement level, representing a potential 160% surge from the current price.
Cardano is maintaining its position above the 50-week Exponential Moving Average and is forming a bullish flag pattern, which is a continuation signal consisting of a vertical line followed by a flag-like consolidation period.
However, it’s important to note that this prediction is based on weekly chart data, implying that the pattern may take time to fully materialize. The flag portion of the bullish flag pattern has already taken over three months to establish.