Cardano's price has risen for the third day in a row as the cryptocurrency market's ongoing comeback continues, with the total market capitalization of all cryptocurrencies jumping to $3.7 trillion.

cardano (Ada) to $1.10, its highest level since January 7, and is now 43% above its December low. The cryptocurrency market cap currently stands at $35 billion. There are three main reasons why the coin will rise 50% soon.

Potential growth of the Cardano ecosystem

ADA has continued to track popular coins like Sui and Solana due to their relatively weak ecosystem. Cardano currently only has 34 DeFi applications, with a total value locked $553 million.

Minswap, the largest decentralized exchange (DEX) in the Cardano ecosystem, processes less than $10 million in daily volume. By comparison, Solana's Raydium handles more than $2 billion a day.

However, the Cardano ecosystem could see significant growth this year, supported by next year Integration with BitcoinOS And the launch of Midnight ZK. Integration with Bitcoin could unlock over $1 trillion worth of assets for Cardano. Meanwhile, Midnight, a zero-knowledge scaling platform, may attract more developers to the ecosystem.

Additionally, Cardano could benefit from an upside Same angle Creators, which may lead to increased transaction volume and overall activity within its ecosystem.

ADA ETF Approval

Another potential catalyst for Cardano price growth is the SEC's approval of exchange-traded funds.

Polymarket dealers expected The SEC will approve many Ripple (XRP) and Solana (Sol) ETFs. JPMorgan analysts He expected billions of dollars in flows to these funds.

If these ETF approvals are approved, there is a possibility that the ADA ETF will also be approved. Cardano, being an American cryptocurrency project with a market capitalization exceeding $35 billion, could benefit from this approval. The ADA ETF is likely to attract more institutional capital and push its price higher.

Cardano price has strong technicals

Finally, ADA's technical indicators suggest that its price could rise significantly during the cryptocurrency's ongoing uptrend.

The daily chart shows that Cardano has formed a bullish flag chart pattern, consisting of a long flagpole and a consolidating rectangle. Such patterns often lead to strong bullish breakouts, as seen recently with XRP, which formed a bullish flag.

Cardano also developed the inverse head and shoulders pattern, which is a popular bullish reversal pattern. Moreover, it formed a breakout and retest pattern, revisiting $0.810, the highest point it reached in March last year.

The cryptocurrency is also supported by the 50-day and 100-day moving averages, while the MVRV remains at 2.5. The MVRV indicator is commonly used to evaluate whether an asset is undervalued or overvalued. An MVRV score of 3.5 indicates that the asset is still undervalued.

As a result, the price of ADA may jump by 50% from its current level to reach $1.60. This price corresponds to the 50% retracement level on the weekly chart.