Cardano Price Elliot Wave Points to a Surge as ADA ETF Odds Jump

Key Insights:

• Cardano price has moved into the third phase of Elliot Wave.
• It has also formed a bullish flag pattern on the weekly chart.
• It is ripe for a breakout as the odds of ADA ETF approval jumps

Cardano price could be forming the third phase of Elliot Wave as the odds of ADA ETF approval rises. ADA rebounded to a high of $0.8730 today, August 13, up by 26% from its lowest level this year.

Cardano Price Elliot Wave Chart Analysis

The daily timeframe suggests a strong Cardano price rebound if it moves above the descending trendline, connecting the highest swings since December of last year.

One potential catalyst is that the ADA price could be forming the impulse Elliot Wave pattern. EW is a pattern that explains how asset prices move by identifying five stages.

In this case, Cardano has already formed the first phase between June 22nd and July 21. This phase started when it crashed to the key support at $0.5132, where it formed a double-bottom pattern.

The second corrective phase formed a bullish engulfing pattern between June 21 and August 2nd. This candlestick pattern is characterized by a big bullish candlestick that covers a smaller bearish candle fully.

The ongoing rebound is potentially the third wave, typically the longest and the most bullish. This pattern will be confirmed if ADA price rises above the resistance level at $0.9335. Flipping that resistance into a support level will invalidate the highly bearish double-top pattern whose neckline is at $0.6877.

Additionally, moving above that price will mean that the coin has flipped the descending trendline, where it has failed to move above since last year.

The third phase of the Elliot Wave has two potential targets. First, it may jump to $1.1862, its highest level in May, along the falling trendline. The other potential target is $1.3272, the highest level in November last year.

ADA Price Has Formed a Bullish Flag on Weekly

The weekly chart shows that the Cardano price has also formed bullish pattern, which also confirms the bullish outlook. This pattern started to form in November last year when it bottomed at $0.3290.

The vertical line moved from that low level to a high of $1.3263, its highest point in December, giving it a height of 75%.

ADA price has been forming a flag section throughout this year, and is now about to break out. Measuring the same distance from the breakout point means that the coin will surge to $1.5800, its highest level since January 2022.

NIGHT Airdrop as a Catalyst

The most important catalyst for a potential Cardano price surge is the upcoming altcoin season that will see most tokens surge.

Odds of an altcoin season have jumped after the US published weak nonfarm payrolls earlier this month and modest consumer inflation data on Tuesday this week.

The other Cardano price catalyst is the rising odds that the SEC will approve spot ADA ETFs by the end of the year. These odds have jumped to nearly 80% on Polymarket, meaning that participants expect it to be approved.

Recent data shows that American investpors are interested in crypto ETFs, which will lead to more inflows for Cardano funds. Bitcoin funds now hold over $155 billion in assets, equivalent to 6.48% of its market cap. Spot ETH ETFs have $27 billion in funds, same to 4.77% of the supply.

Cardano has a market capitalization of $31 billion. As such, a similar ratio to Ethereum would bring ADA ETFs market capitalization to over $1.45 billion.

Summary

Cardano price has strong technicals, including moving to the third phase of the Elliot Wave pattern. It also has bullish catalysts, including the ongoing Glacier airdrop and the potential for ADA ETF approvals.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decis