TLDR
- Cardano (ADA) has surged 13.4-16% to trade around $0.88-$0.98
- Grayscale’s Delaware trust for ADA sparked ETF speculation
- Technical analysis suggests potential breakout toward $1.50 target
- Positive sentiment indicators and limited selling pressure support bullish outlook
- Short liquidations totaling $832k indicate bears are being forced out of positions
Cardano (ADA) has experienced a sharp upward movement in recent trading sessions, with the cryptocurrency climbing between 13.4% and 16% to reach prices between $0.88 and $0.98. This rally comes amid renewed optimism across the broader crypto market and has been driven by multiple factors that point to potential further growth.
The price action has pushed ADA closer to a decisive breakout point around the $0.88-$0.90 resistance zone. This level has historically acted as strong resistance, and a confirmed breach could open the path toward higher targets.
Market analyst Ali has identified a potential target of $1.50, supported by clear upward projections on his chart analysis. The cryptocurrency appears to be climbing toward mid-range resistance near $0.94 within a channel pattern.
Cardano $ADA is on the verge of a breakout to $1.50! pic.twitter.com/k1AzNfKeaw
— Ali (@ali_charts) August 13, 2025
Chart patterns show higher lows forming since mid-July, which technical analysts consider a sign of sustained buying pressure. ADA’s price action is also aligning with the upper trendline of this pattern, suggesting momentum is building.
The daily chart reveals what some analysts identify as an inverse head-and-shoulders formation. The neckline at $0.94 represents a key breakout area that could accelerate movement toward $1.20 and potentially the $1.50 target.
ETF Speculation Fuels Interest
One of the primary catalysts behind the recent price movement is Grayscale’s establishment of a Delaware trust for ADA. This move has sparked speculation about a possible spot ETF, which could attract greater institutional participation in the Cardano ecosystem.
This strategic step follows Grayscale’s historical pattern of creating products before regulatory approval. Such moves have often preceded major market developments, signaling to investors that Cardano may be positioning for inclusion in a spot ETF.
Grayscale recently ranked Cardano in third position in its “Top 10 Crypto Assets by Weekly Returns” with a 6.3% increase between July 31 and August 7. This represents an improvement from its previous ninth-place ranking.
The combination of ETF anticipation and performance rebound has strengthened the positive market outlook for Cardano. Investors are now watching for any regulatory developments that could transform this speculation into reality.
On-Chain Metrics Support Bullish Case
On-chain data provides additional support for the bullish thesis. The MVRV Z-score has risen to 0.445, indicating that holders are increasingly in profit, but not yet at levels that typically trigger mass profit-taking.
Cardano’s Stock-to-Flow ratio has also increased, suggesting a tightening supply environment. These metrics point to limited selling pressure, potentially giving room for further price growth.
The weighted sentiment indicator has shifted sharply into positive territory, reaching 1.495. This reflects growing bullish confidence among market participants and creates fertile ground for a sustained rally.
These supply metrics reflect a market environment where buyers may need to pay higher prices to accumulate ADA. The current supply-demand setup appears to support the potential for continued upside if demand remains strong.
Liquidation data reveals that short positions absorbed over $832,000 in losses within a single day, compared to $439,000 for long positions. This imbalance in liquidations suggests bearish traders are being forced out as the price rises.
Binance, Bybit, and OKX accounted for the largest short losses, highlighting the widespread impact across major exchanges. Such liquidation patterns can amplify upward price movements as shorts close positions and add to buying pressure.
If the price can hold above key support levels, technical and fundamental factors point toward a positive outlook for Cardano. The convergence of bullish chart patterns, ETF speculation, and favorable on-chain metrics creates a compelling case for potential continued momentum in ADA’s price.
The RSI indicator is hovering near 65, showing strong momentum without yet reaching overbought territory. However, failure to break the $0.94 neckline could result in consolidation between $0.85 and $0.94 in the near term.
Traders are closely watching for confirmation signals in the short term to validate the anticipated breakout position, balancing risk and opportunity in their market approach.
