Cardano (ADA) reaches an impressive height as Coinbase officially launches CFTC-regulated futures for natural gas and ADA.
According to the information shared on X, this development comes exactly two weeks after Coinbase confirmed its filing with the Commodity Futures Trading Commission (CFTC).
The self-certification with CFTC ensures that Coinbase asserts regulatory compliance with futures contracts. Technically, users would be able to gain exposure to ADA without necessarily holding it. The natural gas futures offering indicated in the announcement would also ensure that Coinbase can compete with traditional future exchanges.
Our research also shows that each futures contract is worth 1000 ADA, increasing participation and flexibility which is not available on the traditional spot market. Meanwhile, this milestone could also pave the way for a potential ETF approval from the US Securities and Exchange Commission (SEC). Currently, the Grayscale Investment is the only institution that has filed for a Cardano ETF. As mentioned in our previous news brief, the filing was done through NYSE Arca.
Cardano (ADA) Price Analysis
Soon after Coinbase’s announcement, the price of ADA surged from its daily low of $0.63 to $0.68. At press time, the asset had marginally declined to $0.67. However, its daily gains were still up by 3.9%. Traders are also increasing their daily activities as trading volume surges by 21% to hit $760 million.
According to crypto analyst Anonymous, ADA could surge by 900% to hit $3.80. On a good period, the analyst believes that the asset could reach $5.6. The analyst also believes that ADA is imitating the 2021 trend when the price surged by 1,420%, moving from $0.17 to $3.10.
In February, another analyst called Dan Gambardello predicted that ADA could hit $10. Similar to the analysis of Anonymous, Gambardello argued that the asset could mirror its historical movement. In the previous cycle, the assets surged from a $4 billion and $5 billion market cap to a $100 billion valuation. At that time, many investors doubted this possibility.
Per his observation, the current structure is similar to the previous one, where consolidation occurred before a breakout. Basing his prediction on technical analysis, Gambardello hinted that ADA has been forming an inverse head and shoulders pattern since December 2023.
Source: Dan Gambardello
Commenting on the current stagnation, Gambardello attributed this to the broader monetary conditions. As we reported last week, he also disclosed that the previous bull market coincided with “the rising Federal Reserve liquidity.”
Meanwhile, analyst Ali Martinez has also predicted that the asset could either break above the $0.77 level or drop far below the current level in the short term, as explained in our last analysis.