Cardano price jumped to the highest point this year, and a forming Elliott Wave pattern points to more upside as its stablecoin growth accelerates.
Summary
- Cardano price could be ripe for more gains as the stablecoin market cap hit a record high.
- There is a 80% chance that the SEC will approve a spot Cardano ETF.
- ADA has moved to the third phase of the Elliot Wave chart pattern.
Cardano (ADA) soared and briefly crossed the key resistance level at $1 as the crypto industry rallied. It was trading at $0.922 at press time, up 80% from the year-to-date low.
Cardano stablecoin growth is continuing
ADA’s rally came as third-party data showed that its stablecoin market is expanding rapidly. According to DeFi Llama, the stablecoin supply on Cardano has climbed to a record high of $39 million, up sharply from the year-to-date low of $22 million.
Moneta, the largest stablecoin on Cardano, has a circulating supply of $12.4 million, while Anzens USDA holds $10.16 million. USD Coin’s supply on the network is valued at over $4 million.
While Cardano’s market share in the $270 billion stablecoin industry is minuscule, its upward trajectory is encouraging, especially after President Donald Trump signed the GENIUS Act into law.
Other areas of Cardano’s ecosystem are also growing. Decentralized exchange protocols on its network processed $125 million in transactions in July, up from $103 million in June.
Most of this growth is concentrated in Minswap, which handled over $97 million in transactions in the past 30 days. Other major DEX platforms on Cardano include Splash Protocol, WingRiders, and SundaeSwap.
Meanwhile, ADA is benefiting from rising odds that the Securities and Exchange Commission will approve Grayscale’s ADA ETF later this year. These odds stand at over 80% on Polymarket.
Cardano price technical analysis
The daily timeframe shows that ADA has strong technicals supporting further gains. It initially formed a double-bottom pattern at $0.515 and broke above the neckline at $0.862. This pattern has a depth of about 40%, meaning that projecting the same distance from the neckline gives a target of $1.21.
Cardano has already completed the first and second phases of the Elliott Wave pattern and has entered the third phase, which is typically the most bullish. This phase could drive the price toward key resistance at $1.33, about 45% above current levels.
