Cardano: Will ADA’s ETF hype push the coin past $2?

• Institutional interest in ADA was rising, with Grayscale’s ETF filing signaling increased market validation.
• Price action faced key resistance at $0.82-$0.85; market sentiment is divided between bulls and bears.

Cardano [ADA]  surged by 11%, at the time of writing, outperforming most cryptocurrencies in a market where many assets are retracting. 

At press time, ADA was trading at $0.7587, showing a 4.87% drop over the past 24 hours.

Will Cardano maintain this bullish momentum, or will external market forces hold it back?

Does Cardano’s ETF filing signal growing institutional interest?

Grayscale’s filing for a Cardano ETF has recently sparked a surge of interest from institutional investors. This step shows growing recognition of ADA’s potential as an investment asset within traditional finance.

If the ETF is approved, institutional demand could increase significantly, potentially driving the price higher.

Additionally, this move may help Cardano gain broader market acceptance and liquidity. However, ADA’s ability to capitalize on growing institutional interest depends on broader market trends and Cardano’s continued performance.

 What resistance levels will Cardano face next?

Cardano has been navigating a rectangular consolidation phase since mid-2022, with key resistance levels around $0.82 to $0.85. ADA must break above these levels to target the next significant price point of $2.95. 

If ADA successfully pushes through this resistance, it could trigger a bullish rally, attracting more buyers.

However, should Cardano fail to hold above this resistance, it may continue to consolidate for a longer period. 

Source: TradingView

Market sentiment remains split on ADA’s future

The market sentiment surrounding Cardano is currently divided, with both bulls and bears playing significant roles.

A surge in bullish sentiment occurred in late January 2025, signaling investor confidence in Cardano. 

However, the presence of bearish pressure suggests that Cardano could experience periods of downward movement. Therefore, ADA’s future price action will largely depend on whether bullish sentiment can outweigh bearish influence. 

Source: IntoTheBlock

 How user engagement impacts Cardano’s price

Cardano’s address statistics indicate positive user engagement, with new addresses increasing by 4.79% and active addresses rising by 11.99%. This growth in engagement suggests more users are participating in the network.

However, an increase in zero-balance addresses signals that some traders may be waiting for more favorable price conditions before making further moves.

These mixed signals suggest cautious optimism, with the network growing steadily but with some hesitation from market participants.

Source: IntoTheBlock

How does ADA’s transaction volume affect its price?

Transaction data shows that smaller transactions, particularly those under $1, have increased significantly. This rise indicates growing retail interest in Cardano. 

However, larger transactions, especially those in the $1 million to $10 million range, have decreased sharply, suggesting that institutional investors remain on the sidelines for now.

This trend may limit ADA’s ability to sustain significant price increases unless institutional players begin to re-engage. 

Source: IntoTheBlock

Cardano’s recent surge, along with increasing institutional interest, provides an optimistic outlook for ADA. 

However, Cardano’s ability to sustain this momentum will depend on breaking through key resistance levels and managing market sentiment between bulls and bears.

If Cardano can maintain its bullish trend, it could see further price appreciation.