ADA ETF Odds: Cardano Price Hovering In Falling Wedge: What’s Next?

• ADA price has surged by 165% since November.
• The trading volume has dropped by 30% to $927.29 Million in a day.

Cardano (ADA) price has witnessed a giant gain of 218% in November. The bullish trend was halted near the $1.20 mark. From the beginning of December, the Cardano price has been falling and has slipped below the 20-day EMA. This fall might be a correction phase and it could trigger another bullish rally after the breakout.

Recent price action on the Cardano price chart indicated a notable challenge to the previous resistance level near $1.00. Moreover, following a notable recovery from its lower levels.

The $1.00 barrier, which had been a significant obstacle since early 2024, was broken by ADA’s recent surge.

ADA Price Has Formed a Falling Wedge Pattern

When writing, Cardano crypto was trading at $0.91, down by 5.00% over the past 24 hours. Its market capitalization was $32.35 Billion and ranks 9th in the cryptocurrency market.

Recently, the ADA price has faced resistance from the upper descending trendline and has slipped below the 20-day EMA. The price was heading toward the previous support level of $0.85.

According to the chart structure, the price is expected to take support on the $0.85 mark. If the price takes support on the $0.85 level and gains bullish momentum, it might exceed the 20-day EMA. Once the Cardano price exceeds the 20-day EMA, buyers might become stronger. Also, the chances of the breakout from the falling wedge might increase.

Once the price breaks out from the falling wedge pattern, a strong bullish trend could be observed. If the trading volume supports the momentum, it could touch the $2 mark.

Alternatively, if the price loses the support level of $0.85, it could be a selling opportunity. Losing this level could a selling signal and a profit-booking scenario can be generated.

Cardano ETF Analysis in 2025

However, data from Polymarket indicated that the likelihood of a Cardano ETF being approved by the end of 2025 was decreasing, currently at 21%. Cardano’s price trajectory may be significantly impacted by this drop in investor confidence.

Approvals of ETFs are generally seen as positive developments that give institutional investors credibility and facilitate access. Optimism regarding Cardano’s potential to surpass its all-time high of $3 may be tempered by the diminishing likelihood of an ETF.

Cardano’s upward momentum may be capped by the market’s cooling sentiment toward an ETF approval, which is consistent with investors’ cautious approach.

Even with the setbacks regarding the ETF, there may still be a way for ADA to reach and even surpass its prior highs. The overall altcoin market and new Cardano announcements could spell a different path for the crypto in the near term.

Correction Imminent

While ADA has experienced significant gains, recent market trends indicate a potential correction, with the price facing resistance and slipping below key support levels.

The formation of a falling wedge pattern suggests that a bullish breakout could occur if ADA holds the support at $0.85 and gains momentum.

However, the decreasing odds of a Cardano ETF approval by the end of 2025 may dampen investor sentiment and hinder its potential to reach previous all-time highs.

Without strong institutional interest, ADA could struggle to maintain upward momentum. Nevertheless, if market conditions remain favorable and Cardano announces positive developments, there remains a possibility for ADA to surpass its prior highs.

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 decisions.