These 3 Reasons Why Cardano (ADA) Price May Jump by 70% and Retest the Key Resistance Level at $1.176

Cardano (ADA) price dropped to a low of $0.70 on Sunday, down from the year-to-date high of $0.747.

The price of Cardano (ADA) has dropped in the last three consecutive days as last week’s surge took a breather. The coin dropped to a low of $0.70 on Sunday, down from the year-to-date high of $0.747.

Here are the top three reasons why the coin may jump by 70% and retest the key resistance level at $1.176.

Cardano whales are buying

The first bullish catalyst that may push the Cardano price higher is that whales are accumulating the coin.

According to blockchain data from Santiment, addresses holding between 10 million and 100 million ADA coins account for about 35.5% of all coins in circulation. The percentage stood at 33% in January.

According to blockchain data from Santiment, addresses holding between 10 million and 100 million ADA coins account for about 35.5% of all coins in circulation. The percentage stood at 33% in January.

Also, the percentage of ADA holders with balances of between 1 million and 10 million has jumped to 15.83%. This whale activity is a sign that these investors anticipate more gains ahead.

According to Ben Armstrong, a cryptocurrency analyst, usually, whale dumping is seen as a bearish catalyst while their accumulation is a bullish sign.

ADA ETF approval and Bitcoin staking feature

The price of Cardano will likely do well as the odds of a spot ADA ETF increase now that the Securities and Exchange Commission has confirmed Paul Atkins as the new agency chair. Polymarket puts the probability of this ETF happening this year at 55%.

The SEC is currently reviewing over 70 crypto-related ETFs. According to cryptocurrency news outlet TokenPost, under Paul Atkins, it is likely that it will approve most of these funds. Most notably, the agency may also approve tokens that have staking features, enabling ETF investors to earn monthly returns.

On the other hand, the SEC chair may reject tokens that do not offer any yield or income to investors.

The Cardano co-founder, Charles Hoskinson, has continued to promise more Bitcoin (BTC) integration. The goal is to provide Bitcoin holders with a way to generate a return through a safer zero-knowledge solution. ZK proofs will be better than centralized options like Celsius, which collapsed in 2022.

Bitcoin staking on Cardano will be enabled by its sidechains, like Midnight and Midgard. According to Midnight’s website, it will enable BTC to be represented on Cardano while maintaining transaction privacy.

Cardano price has double-bottomed

The other catalyst for the ADA price is that it has formed a double-bottom pattern at $0.510. A double bottom is usually a bullish sign, signaling that short-sellers hesitate to place short bets below a key price. Its neckline is at $1.176, its highest level on May 3.

The coin also hovers at the 61.8% Fibonacci Retracement level, which is known as the golden ratio, where rebounds usually happen. It has also formed a small bullish flag pattern.

Therefore, the Cardano price will likely have a bullish breakout in the coming week as bulls target the double-bottom’s neckline at $1.17, about 70% above the current level.