With the decision regarding Grayscale’s spot Cardano (ADA) Exchange-Traded Fund (ETF) postponed, the altcoin is revisiting a crucial zone. Various analysts have proposed that a significant surge may be on the horizon after the price rebounded from the lower range.
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Cardano Declines As Spot ETF Faces Delay
On Tuesday, Cardano initiated a recovery from its correction at the beginning of the week after bouncing from an essential zone. The cryptocurrency has been trading within the $0.84-$0.96 range since its breakout in early August, achieving a five-month peak of $1.02 on August 14.
Throughout the recent market downturns, ADA has revisited the $0.85 level as support several times and has been striving to regain the $0.90 resistance, briefly maintaining this level over the weekend.
Nonetheless, Monday’s correction, in which Bitcoin fell to its lowest point in over a month, drove Cardano back to the range lows, temporarily losing the $0.84 support before beginning to recover.
In the midst of this pullback, the US Securities and Exchange Commission (SEC) postponed the deadline for Grayscale’s spot Cardano Exchange-Traded Fund by two months.
“The Commission is extending the timeframe for approving or disapproving the proposed rule change for an additional 60 days. The Commission deems it fitting to designate a longer period in which to issue an order approving or disapproving the proposed rule change so that it has ample time to evaluate the proposed rule change and the matters raised therein,” the regulatory body elaborated in the Monday filing.
As a result, the SEC has shifted the final decision deadline to October 26, 2025. This follows the Commission’s recent two-month postponements for numerous crypto-related ETFs.
Earlier this month, the regulatory body announced that it had delayed the decision deadline for several spot Solana ETFs, including Grayscale’s, to October 16. Similarly, it extended the review deadline for multiple spot XRP and PENGU ETFs for late October.
Is an ADA Breakout Imminent?
Analyst Crypto Bullet emphasized that Cardano appears to be re-enacting its strategy from the previous cycle. After the 2017-2018 surge, ADA consolidated in a multi-year range, creating a double bottom pattern between 2019 and 2020.
Following the late 2020 breakout, the cryptocurrency reclaimed the upper boundary of the range before retesting this level as support, initiating its substantial surge toward ADA’s $3.09 all-time high (ATH) in the subsequent months.
The analyst believes that Cardano’s performance in this cycle has mirrored a similar trajectory, with the breakout and retest from the multi-year accumulation expected between late 2023 and early 2024.
During the Q4 2024 rally, the altcoin rebounded from the upper boundary of the range and is currently in the re-accumulation phase, which would precede a significant surge in the next months, if history is any guide.
To Crypto Bullet, “one final leg is on the way,” aiming at a possible target between the $1.70-$2.10 range, according to the analyst.
In the meantime, market observer Sebastian noted that ADA’s current performance will “largely rely on Bitcoin’s movements,” implying that the leading cryptocurrency may face a more substantial retracement shortly.
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He mentioned that the altcoin has been navigating within a bullish flag since the breakout in early August, with the upper limit resting around the $0.90 mark.
If it fails to reclaim this level, the cryptocurrency may face a pullback to the lower trendline near $0.80. However, if Cardano breaks out from the bullish formation, it could surge toward the $1.20 target.
At the time of this writing, ADA is trading at $0.87, reflecting a 4% increase in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
