Cardano Price Forecast: Grayscale Submits ADA ETF Application to NYSE

Cardano price forecast, in a significant development for the cryptocurrency market, Grayscale Investments has filed for an exchange-traded fund (ETF) focused on Cardano (ADA) with the New York Stock Exchange (NYSE).

Cardano (ADA) has demonstrated a recovery of 6%, currently trading around $0.75 as of Tuesday. This follows a retest of its key support level the previous week. Additionally, crypto asset manager Grayscale has filed for a Cardano exchange-traded fund (ETF) with the New York Stock Exchange (NYSE), indicating potential positive developments for the cryptocurrency. Technical indicators and on-chain data suggest further recovery may be on the horizon.

Grayscale Files for Cardano Exchange-Traded Fund

On Monday, Grayscale submitted its application for a Cardano ETF, expanding its portfolio of crypto ETF offerings, which recently included applications for Ripple (XRP), Solana (SOL), and Litecoin (LTC) ETFs. The introduction of an ETF is generally seen as a positive sign for Cardano's long-term prospects, as it would facilitate easier access for traditional investors without the need to directly purchase and store ADA. Furthermore, ETF approval could enhance the legitimacy of Cardano and improve its liquidity in the market.

Cardano Technical Outlook: Signs of Recovery

Cardano's price found support near the 61.8% Fibonacci retracement level, drawn from the August 5 low of $0.27 to the December 3 high of $1.32, at around $0.67 on Sunday. Following this, the price experienced a 4.51% increase on Monday. As of Tuesday, ADA is continuing its upward trajectory, having broken above its weekly resistance at $0.74.
If ADA can maintain its momentum and close above the $0.74 resistance level, it could potentially retest its previous high of $0.98.

Relative Strength Index (RSI) Analysis

The Relative Strength Index (RSI) on the daily chart currently stands at 38, having bounced back from an oversold level of 30 on Sunday. This indicates a slight increase in bullish momentum. However, for this momentum to be sustainable, the RSI must rise above the neutral level of 50, which would support a more robust recovery rally.

Market Sentiment and Funding Rates

According to Coinglass’s OI-Weighted Funding Rate data, the sentiment among traders is shifting positively, with a decreasing number of traders betting on further declines in ADA's price. This index, which reflects the yields of futures contracts weighted by their open interest rates, shows that a positive funding rate (where longs pay shorts) has emerged, suggesting bullish sentiment in the market.

In fact, the funding rate for ADA increased from -0.0098% on Monday to 0.0041% on Tuesday. This positive shift indicates that longs are currently paying shorts, often a precursor to upward price movement.

Conclusion

In summary, Cardano's recent recovery and the filing for an ETF by Grayscale could signal a positive turning point for the cryptocurrency. Technical indicators, such as the Fibonacci retracement levels and RSI, point to the potential for further gains. As market sentiment improves, ADA may be well-positioned for continued upward momentum. Investors should keep an eye on these developments as they unfold.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.