Speculation Surrounds Cardano ETF
Interest in a Cardano (ADA) ETF is growing following the success of similar investment products for Bitcoin and Ethereum. Recent comments from Cardano's Founder, Charles Hoskinson, have intensified speculation. Hoskinson responded playfully to a tweet about a potential Cardano ETF with a GIF captioned, “Fine, I’ll do it myself.” This has sparked optimism among ADA supporters, interpreting the response as a positive hint towards the launch of an ETF for Cardano.
Potential Impact on ADA’s Price
The approval of a Cardano ETF could significantly influence ADA’s market value. The introduction of an ETF might provide a new investment avenue for ADA, potentially boosting its visibility and market presence. If successful, it could help ADA approach its all-time high of $3.10, which was last reached during the cryptocurrency bull market of 2021.
Currently, ADA is trading at approximately $0.391. This represents a recent drop of 5.41%, which analysts suggest could present a buying opportunity. The critical support zone for ADA lies between $0.385 and $0.379. If ADA stabilises within this range, it could provide a foundation for a potential rebound.
Technical Analysis
According to IntoTheBlock’s In/Out of the Money Around Price (IOMAP) data, around 161,130 addresses hold 1.91 billion ADA tokens at an average price of $0.385. This data indicates a significant support zone between $0.379 and $0.391, suggesting that ADA might experience a reversal if it remains within this range.
If ADA manages to surpass the $0.445 mark, analysts forecast a possible rally of up to 26%, potentially pushing the price to around $0.564. This projection aligns with the 50% retracement level from recent price highs and lows, indicating a potential recovery if bullish trends continue.
Despite the excitement surrounding a Cardano ETF, the actual effect on ADA’s price remains uncertain. Market dynamics and ETF approval processes will ultimately determine the impact on ADA’s valuation.