Cardano Price Surge: Is This the Start of ADA’s Major Recovery or Another Dip?

• Cardano’s price surge signals potential recovery amid ETF excitement.
• Institutional interest in ADA grows with U.S. ETF filings.
• ADA’s demand zone holds key to its next price move.

Cardano’s price has recently surged, sparking fresh speculation about the future direction of ADA. After weeks of compression and bearish pressure, the cryptocurrency appears to be stabilizing. The latest development driving the price action is the news surrounding the introduction of Cardano-focused exchange-traded funds (ETFs) in the U.S. These ETFs, though still awaiting regulatory approval, have drawn attention from institutional investors, indicating that ADA might be entering a new phase of growth.

Volatility Shares Trust has filed amendments to include both spot and leveraged Cardano ETFs, which aim to track ADA’s daily performance. While this move is not yet an official approval, it highlights increasing institutional interest in Cardano, potentially paving the way for more market liquidity and sustained trading activity. Such filings usually occur when issuers feel confident about the market’s readiness and regulatory environment. The inclusion of both spot and leveraged versions signals expectations for long-term trading interest, which has influenced ADA’s price movement.

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What’s Behind the Surge in Cardano’s Price?

As Cardano’s price approaches a critical demand zone near $0.300, market behavior has shifted, showing signs of controlled accumulation rather than the frantic buying seen during price surges. The recent price action shows a lack of follow-through on the downside, with tighter candles and reduced downward extensions. These signs suggest that sellers are losing steam and that ADA might be building a base for a potential recovery.

Source: Tradingview

Should ADA hold steady above this demand zone, it could be poised for a potential rally, with resistance levels around the 50-day EMA at $0.4300 and the 200-day EMA at $0.5000. If the price continues to stabilize and climb, ADA may start to transition from its correction phase into a more sustained recovery. However, if ADA fails to hold the demand zone, the broader corrective trend could resume, and the cryptocurrency might face further downward pressure.

The market is now at a crucial crossroads. ADA’s price movement over the coming days will determine whether the current surge signals the beginning of a major recovery or if it will be just another brief uptick before the downtrend continues.

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