Potential ADA Price Movement Ahead of SEC ETF Decision as On-Chain Activity Increases

• As the SEC’s decision on the ADA ETF approaches, Cardano is experiencing a surge in on-chain activity, signaling heightened investor interest.

• Amid this uptick, ADA’s trading volume has sharply increased, suggesting that traders are gearing up for potential volatility.

• “Despite the significant fluctuations, Cardano’s fundamentals show resilience,” noted a COINOTAG source, highlighting the growing interest in its decentralized finance (DeFi) landscape.

Cardano’s ADA sees increased trading volume amid SEC ETF decision anticipation, raising questions about its price trajectory and investor sentiment.

On-chain metrics show mixed signals regarding Cardano’s engagement

According to data from DefiLlama, Cardano has witnessed a significant uptick in trading volume recently, indicating a renewed interest among participants in the cryptocurrency market. Despite this growth, daily trading volume has remained below the $10 million mark, a substantial drop from the highs of over $30 million recorded late last year. This shows that while interest may be increasing, actual transactions are not reflecting the same momentum.

Source: DefiLlama

Moreover, Cardano’s Total Value Locked (TVL) remains relatively strong, having peaked above $700 million before adjusting to around $500 million. This substantial TVL improvement from mid-2024 levels, when it was approximately $200 million, indicates that the network’s DeFi ecosystem is maintaining a stable base of liquidity, despite minor fluctuations.

Source: DefiLlama

ADA price attempts recovery amid market fluctuations

Currently, ADA is trading at $0.8082, having made some recovery over the past weeks. The critical resistance level lies at the 50-day Moving Average (MA) of $0.8335, while the 200-day MA stands at $0.9289, indicating that the asset may continue facing challenges in its upward trajectory.

Source: TradingView

Currently, the Relative Strength Index (RSI) rests at 53.10, reflecting a neutral market state. This position suggests potential volatility ahead, as ADA could react to external systemic developments.

What’s next for ADA?

The upcoming SEC decision regarding the ADA ETF is anticipated to be a significant factor influencing the asset’s market trajectory. A favorable ruling could potentially stir institutional investments and propel ADA towards the $1.00 mark, whereas a denial or indefinite delay may hamper further growth and price stability.

In the short term, traders need to monitor ADA’s performance closely. A breakout above $0.8335 would reinforce an optimistic outlook, while rejection at this critical threshold could lead to further price consolidation around $0.77 or lower.

With increased on-chain metrics and an impending regulatory decision, ADA stands out as a noteworthy asset for traders and investors alike in the coming weeks.

Conclusion

In summary, Cardano is navigating a complex landscape characterized by mixed on-chain signals and critical price resistance levels. While optimism exists with increased volume and TVL growth, the market eagerly awaits regulatory developments, underscoring the asset’s potential volatility ahead.