- Cardano surged above $0.80 after Grayscale filed for a spot ETF, sparking bullish sentiment.
- Cardano faces key resistance at $0.80, with potential targets at $1 and $1.50 if momentum strengthens.
ADA Surges on ETF News
Cardano (ADA) made a strong move above $0.80 after Grayscale filed for a spot ETF under the ticker “GADA.” This news triggered a 20% surge, with ADA climbing from $0.663 to $0.83.
However, despite the initial spike, ADA struggled to hold its gains. The price is now hovering around $0.79, retesting the 20-day Exponential Moving Average (EMA).
Coinbase Named as Custodian
A key detail of the ETF filing is that Coinbase Custody Trust Company will serve as the custodian, while BNY Mellon Asset Servicing will handle administration.
This move could open the door for more institutional investors to gain exposure to ADA. Some analysts believe the ETF could push ADA past the $1 resistance level. However, the short-term technical indicators show that ADA is currently in a consolidation phase.
ADA Faces Critical Resistance
According to CoinMarketCap data, ADA hit a daily high of $0.8104 but failed to hold above the 20-day EMA. The Relative Strength Index (RSI) is at 47.53, indicating that Cardano is neither overbought nor oversold.
If ADA breaks above $0.80 with strong volume, it could challenge the $1 resistance level. A further breakout above $1 could open the door to $1.50.
Technical Indicators Support Bullish Outlook
Crypto analyst ‘Chris O’ pointed out that ADA is forming a “liquidity base,” a pattern similar to the 2021 bull run.
The Moving Average Convergence Divergence (MACD) indicator also signals bullish momentum. The MACD line remains above the signal line, and the histogram is green, confirming buying pressure.
Will the ETF Filing Drive ADA Higher?
The big question is whether Grayscale’s ETF filing will trigger sustained gains for ADA. If the SEC approves it, institutional demand could rise, potentially fueling a strong price rally.
For now, ADA must hold above the 20-day EMA to maintain bullish momentum. If buyers step in, the next targets remain $1 and $1.50.
The coming weeks will be crucial for ADA’s price trajectory. If the ETF excitement holds, Cardano could be on the verge of a major breakout.
