Cardano Price modestly rose this week after Greyscale has applied to the ADA ETF point. The popular Layer-1 coin jumped to a maximum of $ 0.788 on Thursday morning, which is more than 53% from the lowest level last week. He jumped by more than 150% from the lowest level in 2024.
Cardano ETF hopes
The main catalyst for the price of ADA was Grayscale’s decision to submit to the ADA ETF point, which could light up more applications in the coming days. More firms such as Rex Osprey, Bitwise and Franklin Templeton are the most likely files.
The ADA ETF statement makes sense because it is one of the largest cryptocurrencies with a market capitalization of more than $ 25 billion.
Cardano is also a very popular coin, With more than a million holders who consider this a viable rival of the Ethereum.
ADA ETF will lead to a greater institutional demand for Wall Schell and hype, which, in turn, will lead to an increase in prices in the coming months.
However, there are several risks to remember. Firstly, recent data show that Wall Strith is mostly interested in the EFS on tribal bitcoins and many institutions have largely escaped Ethereum funds. Spot BTC ETFS attracted an influx of more than 40 billion dollars, while the air funds received about $ 3 billion.
One of the reasons for this is that Ethereum ETF does not generate profitability, which is currently about 3% per year. Thus, investors prefer to allocate money on the air directly and bring 3% profitability. Revenue 3.5% is almost along with Schwab US Dividend Equity ETF (SCHD), one of the most popular funds.
The same argument can be Made from ADA ETF spots with a cardano generates income of about 2%. Nevertheless, there is a chance that the SEC will allow the ETF of these networks of evidence to generate a reward for stability. In the note, an analyst from Corefin told Invezz:
“Spot Cardano ETF will generate excitement and, possibly, increase its price. But, as we saw in Ethereum, the influx to the fund can be limited if Kardano does not become a more useful network, such as SOLANA. Since it exists today, Cardano is a chain -prostraks without significant events. ”
Read more: Is the next one ETF Cardano after the strong start of Ethereum ETF?
VIP -Charles Hoskinson
The price of ADA also recovered, as investors expect the upcoming VIP meeting, which Charles Hoskinson promised. This meeting will take place on March 1, and the assumption is that it can be with Elon Musk or David Sax, Crypto and AI Tsar.
The risk, however, lies in the fact that Hoskinson does not always fulfill his promises. For example, Cardano concluded a deal to move the Ethiopia formation system to the blockchain. Four years later, nothing came true.
More recently, Hoskinnson said that he would meet Chainlink, the largest oracle in the industry. This meeting probably did not bring any serious changes.
Meeting with Elon Musk It will have a theory that he would choose Cardano to offer blockchain solutions for the US government. Mask said that he hopes that blockchain technology can help reduce government spending.
Another main problem is that Cardano is largely a ghostly chain, without any serious applications in its ecosystem. This is a much smaller chain than other small networks, such as Aptos, Mantle and Cronos.
Cardano forecast of prices
ADA Price diagram TradingView
The weekly schedule shows that the price of ADA has stabilized over the past few days. He switched to a maximum of $ 0.788, several points higher than a 50-week sliding average and key resistance point of $ 0.80, which is the highest swing in March last year.
Cardano moved to the second stage of the Elliot’s wave section, which is usually corrective. Then he will enter the bull’s third stage, often the longest.
If this happens, the price of ADA will probably have a bull breakthrough and reach $ 1.679, the level of recovery is 50%, which is 112% higher than the current level. The fall below the minimum last week in the amount of $ 0.52 will lead to face in terms of a bullish look.
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