Cardano's Fresh Mega Target in Sight as Grayscale ETF Filing Boosts ADA Sentiment

Cardano (ADA) emerged as the third-best-performing altcoin in August but has kicked off the new month in a bloodbath. Despite trading in red, the outlook for ADA for September is mainly positive, and one key player predicts a price surge above the $1 price mark.

In an X post, Ali_Charts, an analyst known for his bullish altcoin price prediction, has once again laid out the possibilities for the 10th most valued crypto asset by market cap.

The market player shared a technical chart created on August 31st, displaying a 4-hour candlestick chart data in which the analyst highlighted an ascending channel pattern. While the parallel trend lines define a bullish trend, the lower line acts as support where buying interest has historically emerged.

Per the analysts’ assertion, breaking above $0.88 is seen as critical to confirm a rally toward $1.20. If $ADA holds above the lower channel support and breaks $0.88 with strong volume, it supports a bullish outlook toward $1.20. However, a breakdown below the support could invalidate this, potentially driving the price to lower levels.

While technical analytical predictions for September are yet to roll in, fundamental factors seem to validate an even more bullish expectation. More specifically, the latest ETF filing from leading institutional player Grayscale is expected to drive ADA to a new high. 

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Notably, Grayscale filed for an ETF with the U.S. Securities and Exchange Commission (SEC) for new Cardano (ADA) and Polkadot (DOT) exchange-traded funds.

Should the proposal be approved, both tokens could experience significant inflows, potentially driving up the prices of DOT and ADA in the long term.

At report time, ADA is trading for $0.82, with gains from the last 24 hours reaching 0.88%. However, losses from the previous 7 days have surged past 4%, signaling a mild drop in buying pressure.