Cardano, a popular cryptocurrency, faced significant market challenges. Amid a substantial price drop, the actions of large holders and the potential approval of an exchange-traded fund caught attention.
ADA Price Decline
Cardano's ADA was trading above $0.80 last week but sharply declined to $0.63 at the start of the new business week, according to CoinGecko, before slightly rebounding to $0.67. This marks a 15% drop over seven days.
Whale Sales Impact
Popular analyst Ali Martinez, known as Ali Martinez on X, reported that large holders dumped over 170 million ADA within 96 hours, equating to approximately $115 million at current rates. Continued actions of this nature could lead to an oversupply of tokens on the market, increasing price pressure. The whales’ actions might also be followed by smaller players, intensifying the selling spree.
ETF Prospects for ADA
Despite the negative backdrop, the potential for change exists with the possible approval of a spot ADA ETF in the United States. The likelihood of its approval by the end of 2025 has risen to 67%, associated with the SEC's acknowledgment of Grayscale's application. This will allow investors exposure to ADA without directly buying and storing cryptocurrencies, appealing to traditional investors. Grayscale, the largest digital asset manager, operates under regulatory frameworks, offering added security and transparency.
The ADA market is experiencing challenging times, but the prospect of a spot ETF approval could play a key role in its recovery. Close monitoring of investor actions and regulatory processes will be crucial for the cryptocurrency's future.
