Will the SECs May 29 Decision Send It Past $1?

Tech

Will the SECs May 29 Decision Send It Past $1？

• ADA ETF approval odds have reached 71% ahead of May 29 SEC deadline
• Daily transactions increased from 30,000 to 50,000 in recent weeks
• Price currently trading at $0.7524 with bullish technical indicators
• $680 million worth of ADA tokens moved off exchanges, signaling bullish sentiment
• Transaction volumes reached $684.6 million in a single day

Cardano‘s native token ADA has seen increased market activity as the cryptocurrency approaches a critical regulatory decision. With the SEC set to rule on Grayscale’s spot Cardano ETF application on May 29, the market has responded with heightened trading and on-chain metrics showing renewed interest in the blockchain.

The odds of an ADA ETF approval have climbed to 71% on Polymarket, marking the highest level of optimism since April 20. This represents a significant shift from mid-April when the chances of approval before the end of 2025 were only 37%.

Eric Balchunas, ETF analyst at Bloomberg, has expressed even higher confidence, suggesting theres a 75% chance the ETF will launch this year. He also indicated the SEC might approve several crypto ETFs as early as this summer.

The SEC has up to 240 days to review Grayscales spot ADA ETF filing, with the final deadline set for October 22. While the May 29 date represents an interim decision point, many analysts believe a delay is more likely than an outright approval or rejection at this stage.

The prospect of institutional investment through an ETF has driven market activity, with ADA price rising approximately 5% over the past week and 8% since the start of May.

On-Chain Activity Surges

Daily transactions on the Cardano network have seen a marked increase, climbing from under 30,000 at the beginning of May to a current level of 50,000. This growth in network usage coincides with the increasing anticipation surrounding the ETF decision.

Transaction volumes have also shown strength, reaching $684.6 million in a 24-hour period. This metric suggests active usage of the network beyond mere speculative trading.

Adding to the bullish sentiment, data from Cardano Feed indicates that $680 million worth of ADA tokens have left exchanges. This movement of tokens to private wallets typically signals investor intention to hold rather than sell in the near term.

ADA is currently trading at $0.7524, maintaining its position above the 100-week moving average, which serves as a key long-term support level. The RSI stands at a neutral 51, while MACD and momentum indicators show slight bearish pressure in the short term.

Cardano Price on CoinGeckoGrowth Challenges Remain

Despite the positive price action and increasing transaction counts, Cardano faces challenges in its ecosystem development. The network currently supports only 48 DeFi applications and holds $443 million in total value locked, with just $31 million in stablecoins circulating on the platform.

These figures place Cardano behind newer blockchain networks like Unichain and Sonic in terms of DeFi adoption and usage. This ecosystem underperformance represents a potential hurdle for long-term growth.

However, Cardano is reportedly outpacing Ethereum and Solana in core developer activity, which could signal future improvements to the platforms capabilities and features.

Technical analysts remain optimistic about ADA‘s price prospects. If the current momentum holds, the price could retest last year’s high of $1.207. A breakthrough above that level might open the path to $2, with some analysts suggesting even higher targets of $3 to $4.50 based on historical patterns.

The May 29 SEC decision represents a major catalyst for ADAs next move. An approval from the SEC could open the door to institutional investment and potentially send ADA above the $0.84 resistance level, potentially initiating a fresh rally.

The next 24 hours will be crucial for Cardano as traders await the SEC‘s verdict on the ETF application, which could set the tone for ADA’s price action in the coming months.