Cardano (ADA) Drops 2% Amid SEC ETF Decision Anticipation

Cardano (ADA) is currently experiencing a downturn, with its price falling by 2% since yesterday. The cryptocurrency is trading at $0.7429 at the time of reporting. On the hourly chart, ADA's price has bounced off the support level of $0.7460, but if bulls fail to take control, traders may see a level breakout followed by a decline to the $0.74 range. On a larger time frame, the price of ADA is distant from key levels, with a focus on the interim level of $0.74. If this level is broken, there is a possibility of testing the support level of $0.7171 by the end of the week. From a mid-term perspective, bears are in control of the market. If the price fixes below the $0.7171 level, there is a potential drop to $0.65.

Cardano (ADA) is at a critical juncture as it approaches a pivotal decision point on May 28, 2025. The cryptocurrency is trading just under $0.80, with a price prediction for the day ranging from a minimum of $0.7072 to a maximum of $0.8136. This period is marked by significant anticipation surrounding the Securities and Exchange Commission's (SEC) final decision on the Grayscale Cardano Trust ETF, which is due on May 29, 2025. The approval of this ETF could mark a turning point for ADA, potentially solidifying its legitimacy among traditional investors and bringing major liquidity into the market. The odds of ETF approval have surged to 71%, indicating growing market optimism. This optimism is fueled by the potential for ADA to join the ranks of Bitcoin and Ethereum ETFs, which have already been approved or are under speculation. A positive decision from the SEC could act as a catalyst, pulling new liquidity into the Cardano ecosystem and pushing ADA back into the conversation among top institutional assets.

Technically, ADA's price action is tightening within a symmetrical triangle, a pattern that typically signals a decisive move is imminent. The Stochastic RSI has bottomed out, suggesting that bearish momentum may be fading. If ADA can push through the triangle’s upper resistance line with strong volume, it could open the door for a fresh rally. However, traders should remain cautious, as a breakdown in support could lead to a quick drop to retest lower levels. Analysts have set various targets for ADA, with conservative estimates at $1.30, main targets at $1.50, and stretch goals reaching up to $2.60. These targets are contingent on ADA breaking above its current range and holding strong. If momentum fades, the market could see another round of sideways action. However, if ETF approval lands and bulls take charge, these targets could come into play faster than expected.

Cardano's recent performance has been bullish, with a 27% rise over the past month and a break through the $0.735 resistance level. This momentum is further supported by a spike in daily transactions, which have surpassed 50,000 as ETF approval hopes build. The decision by Input Output, confirmed via the Cardano blockchain on May 28, 2025, within Block 11922504, adds to the positive sentiment surrounding ADA. In summary, Cardano is at a critical juncture with the SEC's ETF decision looming. The market is cautiously optimistic, with technical indicators suggesting a potential breakout. If the ETF is approved, ADA could see significant upside, with targets ranging from $1.30 to $2.60. However, traders should remain vigilant, as the market could also see a retracement if support breaks. The coming days will be crucial for ADA as it navigates this pivotal moment.