While still quite a ways off from its pandemic-era highs of more than $3 per token, cryptocurrency Cardano (ADA 4.11%) is once again on the move. On Monday, Cardano saw its native token ADA surge more than 5% as of 4:30 p.m. ET. That's a 24-hour move, though this token has really been on quite the rally in recent weeks.
With Cardano now trading around $0.88, investors betting on a move toward the $1 level do have some key catalysts to rely on, outside the broadly bullish macro picture underpinning this sector.
Bullish bets on SEC ETF approval spurring demand
As one of the largest (and oldest) Layer-1 networks in the market, Cardano benefits from name recognition and solid positioning from large investors, or so-called whales. Indeed, that's one of the key metrics many traders and speculators rely on for whether a specific point in time is a buying or selling opportunity for tokens like Cardano.
Image source: Getty Images.
Right now, bullish momentum appears to be heating up, as many market participants appear to be looking to get ahead of an upcoming spot ETF approval by the SEC. As most investors are well aware, the SEC has starkly changed its position on the cryptocurrency sector, largely viewing these digital assets as investment-worthy (but that's really up to each individual to determine).
If Cardano is among the next major networks to receive the go-ahead for a spot ETF, I'd expect liquidity to surge on this network. Additionally, developers looking to build out new applications may choose to do so on a network with even greater perceived stability.
We'll have to see if this rally can be sustained. After all, Cardano has bounced off the $1 level a couple of times over the past few months. But it does appear investors are looking to get in front of what could be a big rally, so this token is one that will certainly be fun to watch.
