Cardano (ADA) has pulled back over the past three days, cooling off after hitting a fresh year-to-date high of $0.747. As of Sunday, the token had dropped to $0.70. Despite this minor retreat, analysts remain optimistic about Cardano’s future price action, projecting a potential 70% rally toward the $1.176 resistance level. Here are three key reasons why Cardano may be on the verge of a major breakout.
1. Whale Accumulation Signals Growing Confidence
One of the most bullish catalysts supporting Cardano’s future price surge is whale accumulation. According to on-chain analytics firm Santiment, wallets holding between 10 million and 100 million ADA now account for 35.5% of the total supply — up from 33% at the beginning of the year.
Similarly, addresses with holdings between 1 million and 10 million ADA have increased their share to 15.83%. Historically, whale accumulation has been a strong indicator of growing investor confidence and a precursor to major rallies. When large holders add to their positions instead of selling, it often signals expectations of significant price appreciation.
2. Positive Regulatory Outlook and Bitcoin Staking Integration
Another major factor fueling Cardano’s bullish narrative is the evolving regulatory environment. With Paul Atkins now leading the U.S. Securities and Exchange Commission (SEC), the odds of a spot ADA ETF approval have risen sharply. Data from Polymarket suggests there is now a 55% probability of ADA ETF approval this year.
Under Atkins’ leadership, the SEC has shown greater openness toward crypto ETFs and staking-related products. Approval of an ADA ETF particularly one that supports staking rewards could drive institutional inflows and enhance Cardano’s attractiveness to investors.
Additionally, Cardano co-founder Charles Hoskinson continues to push for Bitcoin integration into the Cardano ecosystem. By leveraging zero-knowledge (ZK) proofs through sidechains like Midnight and Midgard, Bitcoin holders could soon earn yields within the Cardano network. This innovation would offer a decentralized and secure alternative to centralized platforms like Celsius, which failed disastrously in 2022.
3. Bullish Technical Setup: Double Bottom and Fibonacci Support
On the technical side, Cardano’s price action has formed a classic double-bottom pattern around the $0.510 level a formation often associated with bullish reversals. The neckline of this pattern sits at $1.176, the high reached on May 3.
Moreover, ADA is currently trading near the 61.8% Fibonacci retracement level, commonly referred to as the “golden ratio,” which often acts as a powerful support zone for price rebounds. The token has also developed a small bullish flag, suggesting that consolidation may soon give way to a breakout.
If ADA successfully completes the double-bottom formation, a move toward the $1.176 neckline representing a 70% upside from current levels becomes highly plausible.
Final Thoughts
While Cardano has faced short-term selling pressure, a combination of whale accumulation, regulatory tailwinds, Bitcoin staking integration, and bullish technical signals paints an optimistic picture. If these catalysts align, Cardano could be primed for a strong rally toward the $1.176 level in the weeks ahead.
