Institutional interest in ADA has been growing, with Grayscale’s ETF submission signaling increasing market validation.
Price action faced significant resistance at $0.82-$0.85. Market sentiment is divided between bulls and bears.
Cardano (ADA) It has skyrocketed 11% at the time of writing, surpassing most cryptocurrencies in a market where many assets have been withdrawn.
At the time of pressing, the ADA was trading at $0.7587, a 4.87% drop in the last 24 hours.
Will Cardano maintain this bullish momentum, or will the external market forces hinder it?
Does Cardano ETF submission signals raise institutional interest?
Grayscale’s submission to the Cardano ETF has recently sparked a surge in interest from institutional investors. This step illustrates the growing recognition of the potential of ADA as an investment asset within traditional finance.
If ETFs are approved, systemic demand could increase significantly and prices could increase.
Furthermore, the move could help Cardano gain wider market acceptance and liquidity. However, ADA’s ability to harness the growing institutional interest depends on broader market trends and ongoing performance of Cardano.
What resistance levels will Cardano face next?
Cardano has been navigating the rectangular integration phase since mid-2022, with key resistance levels ranging from $0.82 to $0.85. ADAs should go beyond these levels and target the next important price range of $2.95.
If the ADA pushes this resistance properly, it could trigger bullish gatherings and attract more buyers.
However, if Cardano cannot hold beyond this resistance, it could continue to consolidate for a longer period of time.
Source: TradingView
Market sentiment remains divided into the future of ADA
Market sentiment surrounding Cardano is currently split, with both bulls and bears playing a key role.
A surge in bullish sentiment occurred in late January 2025, signaling investors’ trust in Cardano.
However, the presence of bear pressure suggests that Cardano can experience periods of downward movement. Therefore, future price actions for the ADA will depend heavily on whether bullish sentiment can outweigh the bearish effects.
Source: IntotheBlock
How user engagement affects Cardano prices
Cardano’s address statistics show positive user engagement, with new addresses increasing by 4.79% and active addresses increasing by 11.99%. This growth in engagement suggests that more users are participating in the network.
However, an increase in zero-balance addresses indicates that some traders may be waiting for more favorable price conditions before making further moves.
These mixed signals suggest cautious optimism as the network is steadily growing, but he is from market participants.
Source: IntotheBlock
How does ADA trading volume affect prices?
Transaction data shows a significant increase in small transactions, especially transactions under $1. This rise shows a growing interest in retailers in Cardano.
However, larger transactions, particularly those in the $1 million to $10 million range, have declined sharply, suggesting that institutional investors are currently on the sidelines.
This trend could limit the ADA’s ability to maintain a significant price increase unless the institutional players begin to get involved again.
Source: IntotheBlock
The recent surge in Cardano, along with growing institutional interest, provides an optimistic outlook for the ADA.
However, Cardano’s ability to maintain this momentum depends on breaking through key resistance levels and managing market sentiment between bulls and bears.
If Cardano can maintain its bullish trend, there could be more price increases.