Cardano (ADA) Price Prediction: ADA Bulls Aim for $1.2 After Reclaiming a Key Support Level

Cardano price hit double-digit gains on Friday to reclaim a key support level. The coin traded at $1.080 after rising by 12.5% on the daily chart at the time of writing-outperforming all the top 100 cryptocurrencies.

Cardano (ADA) price rallied double-digit on Friday to reclaim a crucial support level. The coin was trading at $1.080 after rising by 12.5% on the daily chart at the time of writing. This outperformed all the top 100 cryptocurrencies.

ADAUSD has risen by 25% in the last three days, showing strong bullish sentiment surrounding it.

But what drove ADA price up sharply on Friday? Here are four key drivers.

Potential Spot ETF Approval for Cardano this Year

A major推進力 for ADA price came from news of a potential spot ETF approval for the crypto coin this year. Moreover, the upcoming changes at the Securities and Regulatory Commission (SEC) could make ADA’s ETF journey smoother than pioneers like Bitcoin and Ethereum.

Earlier this week, a filing by Global X showed that the SEC was set to rule on the Cardano Trust application by 24 March. If approved, the ETF will track the performance of ADA’s spot price.

Crypto ETF is a crucial development for any coin as it brings the asset closer to mainstream investors. Moreover, it usually leads to higher demand for the coin, which can prop up its price.

IRS Delays Crypto Reporting Requirements to 2026

Another factor that contributed to ADA’s strong performance on Friday was the Internal Revenue Service (IRS) delaying requirements for crypto reporting until 2026.

This news was music to the ears of crypto investors and brokers, especially those who conduct their business on centralised exchanges (CEX). The new tax reporting rules will apply to crypto transactions starting in 2024.

However, the delay in collecting the data for two years will give the IRS time to develop a clear and efficient system for gathering the information from CEXs.

Higher Traded Volume, Open Interest Suggesting Strong Demand

Cardano price upside will likely stay in play as the asset’s traded volume rose significantly during Friday’s price surge.

According to data from CoinMarketCap, the asset’s 24-hour traded volume was up by 18 percent at the time of writing, with 8.8 million ADA transacted.

Also, ADA recorded a sharp rise in the value of its open interest in the last 24 hours. According to Coinanalyze data, ADA’s perpetual contracts were up by 14.59% to hit $666.1 million while that of futures contracts rose by 16.99% to $3 million.

This signals strong investor confidence that could help drive up Cardano price.

Cardano Price Technical Analysis: Poised for Further Gains

Cardano price pivots at 1.070 and the upside will prevail if action stays above that level. Otherwise, the sellers could take control of the market.

The first resistance is likely to be at $1.100. Clearing that barrier could strengthen the momentum to test $1.125.

On the downside, primary support will likely come at $1.045. Breaking below that level will invalidate the upside narrative. Furthermore, a stronger downward momentum could extend losses and test $1.020.