The Cardano price has spiked by over 16% in the last 24 hours after the digital currency asset management company Grayscale filed for a Cardano ETF (exchange-traded fund) in the United States.
ADA Price Increases After Grayscale Filed Cardano ETF
Grayscale Investments has applied to the U.S. Securities and Exchange Commission (SEC) to launch a spot Cardano (ADA) exchange-traded fund (ETF) on the New York Stock Exchange (NYSE) Arca.
If the SEC approves this application, it will be the first ETF in the U.S. to track ADA directly. This will allow investors to invest in ADA without having to buy the digital currency directly.
Grayscale has chosen Coinbase Custody Trust Company as the asset’s custodian and BNY Mellon Asset Servicing as its administrator.
After this announcement, the price of ADA went up about 16%, reaching $0.80. It outperformed major cryptocurrencies like Bitcoin and Ethereum.
The trading volume increased by 99.50%, amounting to over $1.1 billion, and futures open interest rose by 19.4% to $742 million, showing a growing interest from investors.
ADA reached a high of $0.8159 in 24 hours, up from $0.7. Analysts believe the next important level for the ADA price to reach is over $1, suggesting it could increase by at least 25% from its current level.
Grayscale’s move is part of a larger plan to expand its range of cryptocurrency investment products. It has recently filed for ETFs focused on Solana (SOL), Ripple (XRP), and Litecoin (LTC).
Cardano Price Eyes Potential Breakout as Bullish ABCD Patterns Form
Cardano (ADA) is showing signs of a potential breakout. The ABCD pattern, a classic harmonic trading setup, is nearing completion, suggesting ADA could see a significant upward move.
If confirmed, analysts speculate ADA could rally toward $1.50, representing a major price expansion from its current level of around $0.8.
The ABCD pattern contains four key points (A, B, C, and D), forming a structured higher low, a peak, and a retracement before a final leg up. Here, ADA has completed the first three legs (A to B, B to C, and C to D), indicating that a breakout is imminent if buying pressure continues.
CryptoChainX’s chart reinforces bullish momentum as ADA approaches a key resistance zone near $0.80-$0.85. A decisive breakout could validate the ABCD pattern’s target, propelling ADA toward the $1.00-$1.50 range in the near term.
However, failure to hold above support could lead to a retest of $0.75 or lower before another attempt at higher levels.
Falling Wedge Pattern Signals Potential 32% Rally
The popular crypto analyst and founder of The Moon Show also shared a similar sentiment with his 1.4 million followers on X. He says Cardano (ADA) has been trading in a one-day falling wedge for over two months.
This wedge is a classic bullish reversal pattern that suggests the ADA price may soon break out, potentially reaching $1.23, a 32% increase from current levels.
A falling wedge has declining highs and lower lows, leading to a tighter price range, often resulting in a bullish breakout. ADA’s price action has been steady within this wedge and seems near a breakout point.
If ADA breaks above the upper trendline, it could reach the next critical resistance level at $1.23. This trend matches historical data, where ADA has experienced strong gains after long wedge formations.
If the breakout happens, ADA may quickly rise in price, facing initial resistance around $1.00 to $1.10 before potentially reaching $1.23. ADA could retest support at around $0.75 if the breakout fails before making another attempt.
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