Cardano has been trading within a descending channel on the 4-hour chart since Mid August. However, there is hope for a breakout from this channel with the price set to rally upwards.
On the day, Cardano (ADA) is trading at $0.8576, up by close to 1% over the last 24 hours per CoinMarketCap. Additionally, the coin has surged by over 8% on the weekly timeframe. Moving forward, analysts now eye $1.10 as the next stop for Cardano.
Analyst Says $0.90 is the Key Level to Watch for ADA
Based on the recent price movement, famous crypto analyst Ali (@Ali_Charts) observed that $0.90 is a crucial level for Cardano. Ali argues that once the coin breaches this level, it could open the door to $1.10.
With the price of ADA moving within a descending channel, the current $0.8576 price level aligns with the 0.382 fibonacci level. The key resistance at the moment sits at 0.5 and 0.618 fibonacci levels which align with $0.880 and $0.900, respectively.
A breach of the 0.618 Fibonacci would mean a breakout above the descending channel resistance, potentially pushing Cardano towards $1.10. This level aligns with the 1 fibonacci alignment.
Strong Network Activity to Fuel Cardano’s Rally
Among the many potential reasons why ADA could rally towards $1.10 is strong network activity. As reported by TapTools, Cardano processed over 1 million transactions over the last 30 days. Furthermore, TapTools further highlighted that Cardano’s network activity has been steady despite recent market volatility.
“Cardano has processed over 1 million transactions in the last 30 days. Network activity remains stable, showing continued on-chain usage through market volatility,” TapTools wrote.
A strong network activity indicates a healthy, secure, and potentially valuable network. This contributes to the cryptocurrency’s overall health and potential for growth. For ADA, it could serve as a key price boost.
Upcoming ADA ETF Decision
Besides strong network activity, the upcoming ADA ETF approval decision by the US Securities and Exchanges Commission (SEC) has sparked optimism across the Cardano community. Market watcher ‘Mintern’ shared that the ADA ETF deadline is only 17 days away. The market expects a decision for the Grayscale Cardano ETF on October 23, 2025.
This ETF has a chance of approval according to Mintern. At the moment, the approval odds for the ETF sit at 90%. However, the ongoing government shutdown in the US could delay the approval.
But nonetheless, an approval for the spot Cardano ETF could serve as a major boost for the price. Once approved, the ETF will provide institutional investors with an opportunity to invest in Cardano without direct risks.
Other ETFs awaiting potential approval in October include XRP, Litecoin (LTC), Dogecoin, Solana, Polkadot, SUI, among others.
Cardano has the potential to rally to $1.10 in the upcoming sessions, backed by strong network activity. A strong push above $0.90 could open the door for such a rally. Investors will keep track of the price of ADA to see whether it will reach the target.
