Cardano (ADA) has reclaimed its spot among the top ten largest cryptocurrencies by market capitalization. ADA briefly lost this spot to Hyperliquid after Hyperliquid recorded double-digit gains. Growing speculation about a potential ADA ETF approval after Volatility Shares updated its filing has driven a bullish thesis that the altcoin could recover if the market carnage eases and surge 13x from its current range.
Cardano Moves Back to Top 10 Spot Despite Market Downturn
On February 3, Cardano briefly fell out of the top ten largest cryptos by market cap. This was caused by double-digit percentage gains by the Hyperliquid (HYPE) token. However, after the HYPE rally peaked, ADA reclaimed its position despite broader market weakness.
At press time, Cardano traded at $0.28, down 4.95% over the past 24 hours. The token earlier reached an intraday high of $0.30 before another wave of long liquidations hit the market, pushing prices lower.
Analysts are now expressing bullish sentiment on ADA, with one noting that the price may be ready for a surge to $1.75. The analyst noted that the price was approaching the upper resistance line of a broadening wedge, whose breakout could create a 13x risk-to-reward opportunity.
Volatility Shares Updates ADA ETF Filing
Cardano could be on the verge of receiving approval for a spot ETF. Recent regulatory filings show that Volatility Shares Trust has submitted updated documents for its ADA ETFs. The firm, which manages more than $7 billion in assets, seeks to provide investors with exposure to Cardano through a spot ETF and two leveraged ETFs.
The updated filing coincides with a resumption of inflows to altcoin ETFs. After days of outflows, XRP, Solana, and Dogecoin ETFs have seen demand resume as institutions leveraged the dip. If an ADA ETF is approved, it could catalyze price gains and drive the altcoin higher.
Additionally, the CME is set to launch ADA futures on February 9. According to a CME announcement, the futures product will include large contracts of 100,000 ADA and micro contracts of 10,000 ADA.
The launch of futures products could increase Cardano’s volatility in the coming weeks, especially as the market is experiencing choppy moves.
Source: https://zycrypto.com/cardano-reclaims-top-10-spot-amid-updated-ada-etf-filing/
