With growing optimism in the broader crypto market and new developments in the Cardano ecosystem, there are compelling reasons why ADA’s price could surge an additional 50%. Below, we break down the three main factors driving this bullish outlook.

1. Expanding Cardano Ecosystem

While not as large in scale compared to some competitors, such as Solana or Ethereum, the Cardano ecosystem is about to see some serious scaling this year. Currently, 34 different DeFi applications have been deployed on-chain, with a total value locked of $553 million. That compares poorly to the robust ecosystem developed for Solana but could be about to change for Cardano.

Experts are exploring many fundamental and technical factors behind ADA’s potential 50% surge ahead. Source: BlockchainMaven Via X

It attracts many developers and projects to the network, especially after integrating with BitcoinOS along with the announced release of Midnight, a ZK scaling platform. The BitcoinOS integration in itself has the potential to unlock gigantic value because it would open a way for Cardano to tap into Bitcoin’s over $1 trillion of liquidity. On its part, Midnight’s functionality based on ZK is likely to interest such developers who care about scalability and privacy-two critically important features in the modern development of blockchains.

Another notable trend is the rise of meme coins within the Cardano network. These tokens often drive heightened transaction volumes and user activity, potentially boosting Cardano’s ecosystem in unexpected ways. As more projects and users adopt the platform, the resulting network effects could contribute to ADA’s price appreciation.

2. Possibility of ADA ETF Approval

The potential approval of cryptocurrency ETFs by the U.S. SEC may also be one of the critical events that would strongly influence the ADA price. Some analysts in the industry have argued that ETFs for large cryptocurrencies, including Solana and XRP, might get approved at any time. In that case, an ADA ETF may get approved.

Cardano communities are optimistic about ADA’s ETF approval in 2025. Source: Cardano_Intern via X

An ETF for ADA would be yet another big milestone reached both for Cardano and, therefore, easier to adopt by institutional investors and mainstream financial markets. This could bring in billions of dollars in new investments and thus drive up ADA’s price. Besides, Cardano is one of a few US-based blockchain projects with a market capitalization of more than $35 billion and thus is very promising for regulatory approval.

3. Favorable Technical Indicators

Technical analysis provides further support for the bullish case for ADA. The daily chart reveals a bullish flag pattern, characterized by a strong upward movement followed by a period of consolidation. Such formations often precede significant breakouts to the upside.

ADA price eyeing a potential breakout above the immediate resistance level at $1.32. Source: Londanii/TradingView

It has also created an inverted head-and-shoulders pattern, one of the popular bullish reversal setups. All these signs point toward ADA’s possible surge to $1.60, up about 50% from the current prices. The target corresponds to the 50% Fibonacci retracement level, adding more conviction to the prediction.

Cardano (ADA) price chart. Source: Brave New Coin

In addition, ADA’s price is supported by major moving averages such as the 50-day and 100-day moving averages. The MVRV ratio is also still favorable for the cryptocurrency, indicating that it is undervalued and has room for growth.

Looking Ahead

The combination of a growing ecosystem, the potential for regulatory breakthroughs, and strong technical indicators positions Cardano for a significant price surge. While the cryptocurrency market remains volatile, these factors provide a solid foundation for optimism regarding ADA’s future performance. If these catalysts materialize as expected, Cardano could achieve a 50% price increase in the near term.