ADA Faces Mixed Signals as Grayscale ETF Application Counters Technical Weakness
The post ADA Faces Mixed Signals as Grayscale ETF Application Counters Technical Weakness appeared on BitcoinEthereumNews.com.
Iris Coleman
Oct 01, 2025 06:20
Cardano trades at $0.80 amid conflicting forces as Grayscale’s spot ETF application sparks optimism while technical indicators suggest continued bearish pressure.
What Happened Cardano faced conflicting market forces this week as Grayscale’s application for a spot ADA ETF on the New York Stock Exchange generated significant community excitement, even as the token’s price declined below critical support levels. ADA currently trades at $0.80, showing minimal 24-hour movement of +0.04% despite the underlying volatility. The Details Grayscale’s ETF application represents a major institutional validation for Cardano, potentially opening new investment channels for traditional investors. The filing comes as ADA experienced a notable 15.7% surge earlier in the week, briefly reaching $0.79 before encountering resistance. However, technical pressure emerged as the ADA price fell below the crucial $0.83-$0.85 support zone, creating a bearish technical backdrop that overshadowed the positive ETF news. The ETF application timing coincides with increased institutional interest in alternative cryptocurrency products beyond Bitcoin and Ethereum. Trading volume remains robust at $71.8 million over 24 hours, indicating sustained market engagement despite the mixed price action. Technical Response ADA’s price action reveals the tension between fundamental developments and technical weakness. The token currently trades 5.4% below its 20-day simple moving average of $0.85 and 6.7% below the 50-day SMA of $0.86, indicating short-term bearish momentum. However, ADA maintains an 8.9% premium to its 200-day SMA of $0.74, suggesting longer-term support remains intact. The RSI reading of 43.6 sits in neutral territory, while the MACD histogram shows bearish divergence at -0.0060. Key resistance levels have formed at $0.95 and $1.02, with immediate support holding at $0.75. What Traders Are Doing Market participants appear divided between the institutional optimism surrounding the ETF application and technical selling pressure. The sustained…
Filed under: News - @ October 2, 2025 4:25 pm