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- Cardano price steadies above $0.6 after an 8% rebound, despite the SEC halting Grayscale’s GDLC fund approval.
- Bullish trader activity and technical indicators suggest a possible breakout in the coming weeks.
Cardano (ADA) price increased dramatically this week despite a wave of fresh regulatory pressure from the United States. The cryptocurrency recovered nearly 8% on Wednesday and held steady above $0.60 in early trading on Thursday.
This movement comes at a time when investors are weighing the effect of the SEC’s latest move to pause its approval of the Grayscale Digital Large Cap (GDLC) fund.
Grayscale Fund Halt Raises Questions, But Cardano Holds Firm
Previously, we covered that Grayscale received SEC greenlight to transform its Digital Large-Cap Fund into a fully marketable ETF listed on NYSE Arca. However, a new report shows that the United States Securities and Exchange Commission stated on Wednesday that it would review its earlier approval of the Grayscale GDLC fund.
Notably, this review has temporarily frozen the decision made just a day before. The letter sent to Grayscale referenced Rule 431 of the Commission’s Rules of Practice. This confirms that the July 1 order has been placed on hold until further notice. The SEC added that the New York Stock Exchange would be notified once the commission takes further action.
Grayscale is seeking to convert its GDLC fund into a spot exchange-traded fund (ETF), which would track a basket of five major cryptocurrencies. These include Bitcoin (79.90%), Ethereum (11.32%), Ripple (4.99%), Solana (3.01%), and Cardano (0.78%). The fund currently manages assets worth nearly $774 million.
It is worth noting that despite the sudden reversal by the SEC, the overall crypto market showed resilience. On Wednesday, Cardano price increased by nearly 8% supported by positive investor sentiment, including broader optimism tied to global trade news. By Thursday morning, the price had stabilized near its key support level of $ 0.60.
Cardano Price Outlook Remains Positive Amid Bullish Indicators
As of now, MarketCap data shows that Cardano is trading at $0.6083, following an 8% surge. Meanwhile, Derivatives data shows traders remain confident in Cardano. The long-to-short ratio on Coinglass hit 1.10 on Thursday, the highest in over a month. A ratio above one typically indicates that more traders anticipate the price to rise.
Reports also show that open interest increased by 7.04% in the last 24 hours, reaching $861.53 million—this spike in activity indicates stronger buying pressure.
From a technical perspective, Cardano is currently trading within a falling wedge pattern. This setup often suggests a potential breakout. If the price stays above the $0.58 resistance, it could aim for the upper boundary of the wedge and possibly retest the June 11 high of $0.73.
It is worth noting that the Relative Strength Index is currently at 45 and is slowly trending upward. Notably, this suggests that the recent selling pressure may be easing. On the other hand, the MACD indicator has also shown a positive shift, with signs pointing to a possible upward move. Still, if the price fails to push higher, the next level to watch is the support at $0.49.
Meanwhile, as highlighted in our previous news article, Cardano’s Charles Hoskinson has confirmed that Bitcoin is now officially live on the Lace wallet, following a successful audit. Some market participants believe that this update is partly driving Cardano’s recent price growth.
