Could Cardano Be the Next Ripple? ADA Pumps Over 18% in A Week, Is $2 Next?

ADA is carrying its weight on fundamentals alone with an 18% weekly gain, adding bullishness to Cardano price predictions as the wider market stalls.

The altcoin has entered the top 8, flipping Dogecoin and Tron as Russia-Ukraine peace talks yield no results and hotter-than-expected U.S. PPI dent hopes for a September rate cut.

Still, analysts anticipate up to four rate cuts before year-end, with the potential to stimulate new demand for risk assets like cryptocurrencies.

Speculators Position for Further Gains

Coinglass derivatives data shows speculative demand for Cardano surging, with open interest up 32% over the past week, hitting a peak $1.87 billion.

This marks the highest level since the January bull run, a testament to investor confidence as traders actively follow ADA price moves.

These Positions lean heavily bullish, with Binance’s long/short ratio at 2.93, showing more than 72% of traders betting on upside.

Adding to the momentum, Alphractal reports increasing stickiness among short-term holders, who show little inclination to sell despite recent gains.

In the 2021 cycle, these traders often dumped quickly as ADA rallied. This time, the shift toward accumulation and HODLing suggests a stronger conviction that further gains lie ahead.

ADA Price Analysis: Is $2 Next?

While the July breakout of an 8-month descending channel stands to see further upside, wider market narratives may be catching as momentum indicators begin to show their cracks.

The RSI is now reversing after hitting the oversold threshold at 70, suggesting buyer exhaustion and an opportunity for sellers to regain control.

The MACD line also teeters on a potential death cross, en route to fall below the signal line, an early warning of a new downtrend.

With pressure on the current $0.90 support, Cardano could be in for a fall to the next significant support zone around $0.78

A credible scenario with the September FOMC meeting still 29 days away. Potential rate cuts remain distant, leaving ADA without a near-term catalyst for demand.

Even so, the breakout structure remains intact.

If September delivers on easing expectations, ADA could resume its climb to retest December highs around $1.30, before stretching toward $2—a potential 120% move from current levels.

However, overtaking XRP to become the third-largest altcoin would require an almost 6x gain.

Such a rally would require significant new demand, such as that of TradFi markets with potential 401(k) adoption, and the October 10 deadline for a spot Cardano ETF decision.

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Cardano spot traders could be stuck HODLing another month, awaiting the next catalyst for demand.

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