- Cardano (ADA) dropped 7% in the past day, trading at the $0.6 price level
- The SEC acknowledged Grayscale’s application for a spot Cardano ETF
- Cardano ranked the fourth project with the most notable development activity in the past month
Cardano (ADA) has dropped sharply, close to 10% in the past 24 hours, trading at $0.6862 as of this writing. This price crash happened even though the US Securities and Exchange Commission (SEC) recognized Grayscale’s filing for a spot Cardano exchange-traded fund (ETF).
Grayscale ADA ETF Filing Acknowledged by SEC
Grayscale’s proposal, submitted on February 10, 2025, and officially noted by the SEC on February 24, 2025, is designed to offer investors regulated exposure to ADA.
If approved, shares of the Grayscale Cardano Trust will track ADA’s price, allowing investors to gain exposure without having to directly hold the asset.
Market Sentiment “Bullish” Despite Price Drop
Market sentiment has been positive in response to the news, with betting odds of approval going up to 64% on Polymarket.
Related: Staked Cardano ETP Goes Live on Nasdaq Helsinki via Virtune
Market participants have become more and more bullish on the cryptocurrency, thinking that it is one of the few “made in America” digital currencies.
Cardano Ranks High in Development Activity
Also worth noting is that Cardano is ranked fourth on the list of crypto’s top overall coins by notable development activity over the past 30 days. Data from blockchain analysis platform Santiment shows, Internet Computer (ICP), Chainlink (LINK), and Optimism (OP) are the top three on the list.
ADA Price Analysis: RSI Nearing Oversold
ADA prices have fallen hard, a huge 30% over the last 30 days during the broader digital asset market meltdown.
Looking at the chart below, the Relative Strength Index (RSI) is currently at 35.78, suggesting that ADA is approaching oversold territory (typically below 30). Oversold levels could lead to a potential rebound for the altcoin.
At the same time, the MACD indicator remains in bearish territory, with the MACD line (blue) positioned below the signal line (red), which further supports bearish sentiment. In addition, the histogram remains negative, indicating continued downward momentum.
Key Support & Resistance Levels for ADA
Notably, the next important support lies near $0.60, a psychological level that could attract buyers if ADA continues to decline.
Related: Charles Hoskinson’s Encrypted Statement: What Is Cardano Up To?
On the flip side, ADA needs to reclaim the $0.75-$0.80 range to regain bullish momentum. A break above this zone could signal a trend reversal.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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