Cardano price rose for the third consecutive day as the ongoing crypto market comeback continued, with the total market cap of all coins jumping to $3.7 trillion.
Cardano (ADA) climbed to $1.10, its highest level since Jan. 7, and is now 43% above its lowest level in December. The cryptocurrency’s market cap currently stands at $35 billion. There are three main reasons why the coin may jump by 50% soon.
Cardano potential ecosystem growth
ADA has continued to trail popular coins like Sui and Solana due to its relatively weak ecosystem. Cardano currently has only 34 decentralized finance applications, with a total value locked of $553 million.
Minswap, the largest decentralized exchange (DEX) in Cardano’s ecosystem, processes less than $10 million in daily volume. In comparison, Solana’s Raydium handles over $2 billion daily.
However, Cardano’s ecosystem could see substantial growth this year, supported by the upcoming BitcoinOS integration and Midnight ZK launch. Integrating with Bitcoin could unlock over $1 trillion in assets for Cardano. Meanwhile, Midnight, a zero-knowledge scaling platform, may attract more developers to the ecosystem.
Additionally, Cardano could benefit from the rise of meme coin creators, which could increase transaction volume and overall activity within its ecosystem.
ADA ETF approval
Another potential catalyst for Cardano’s price growth is the approval of exchange-traded funds by the Securities and Exchange Commission.
Polymarket traders anticipate that the SEC will approve several Ripple (XRP) and Solana (SOL) ETFs. JPMorgan analysts anticipate billions of dollars in inflows to these funds.
If these ETF approvals go through, there is a possibility that an ADA ETF could also be approved. Cardano, being an American crypto project with a market cap exceeding $35 billion, could benefit from such approval. An ADA ETF would likely attract more institutional capital and drive its price higher.
Cardano price has strong technicals
Finally, ADA’s technical indicators suggest that its price could rise significantly during the ongoing crypto bull run.
The daily chart reveals that Cardano has formed a bullish flag chart pattern, consisting of a long flagpole and a rectangle consolidation. Such patterns often result in strong bullish breakouts, as demonstrated recently with XRP, which formed a bullish pennant.
Cardano has also developed an inverse head and shoulders pattern, a popular bullish reversal pattern. Furthermore, it has formed a break-and-retest pattern, revisiting $0.810, its highest point in March last year.
The cryptocurrency is also supported by the 50-day and 100-day moving averages, while the MVRV remains at 2.5. The MVRV indicator is commonly used to assess whether an asset is undervalued or overvalued. An MVRV score of 3.5 indicates that the asset is still undervalued.
As a result, ADA’s price could jump 50% from its current level to reach $1.60. This price aligns with the 50% retracement level on the weekly chart.
