Cardano aiming for $1.20, yet sellers maintain control - Next moves?
Cardano (ADA), the eighth-largest cryptocurrency by market cap, has seen a significant surge in trading volume, breaking free from a consolidating triangle pattern. This increased trading volume could provide the volatility needed for a potential breakout, according to technical indicators. However, sellers are currently dominating the Spotify and Futures markets, exerting downward pressure.
In the last 24 hours, CryptoQuant's 90-day cumulative volume delta data shows an uptick in seller dominance in both Spotify and Futures markets. This selling activity could blunt ADA's breakout attempt if buyers fail to build enough momentum, as implied by CryptoQuant.
The surge in ADA's trading volume since early July could fuel a sustained rally. However, the surge in trading activity and growing market cap are being questioned in terms of overpowering the persistent selling pressure in both Spotify and Futures markets. If sellers maintain dominance, Cardano risks slipping back into consolidation, as suggested by Implied.
Institutional investors and whale investors currently hold a cautiously optimistic stance toward Cardano (ADA). They are awaiting regulatory clarity such as the SEC decision on a potential Cardano spot ETF expected in October 2025, which could significantly influence demand and liquidity. Meanwhile, the Cardano development team is actively advancing upgrades like Ouroboros-Leios that may enhance the network's performance. These combined factors could impact ADA’s price trajectory and market confidence.
Retail traders are re-engaging with ADA, indicating increasing liquidity, as reported by Token Terminal. The next target for ADA is the $1.2 resistance level. However, the selling activity could stall ADA's bullish momentum, as implied by the same source.
The relationship between Bitcoin and Bitcoin mining stocks, as well as the optimal investment decision between ADA and Bitcoin mining stocks, remains unspecified. The Fed's 25bps cut has sparked Bitcoin repricing, which could potentially lead to an October breakout, as implied from context. The circulating market cap of ADA is also surging at press time, potentially contributing to the rally, as reported by Token Terminal.
The next few sessions will be critical for ADA, as buying pressure and trading volume could determine the direction of the breakout. It is essential for investors to closely monitor the stock market today and market dynamics to make informed decisions.
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