Cardano Price Declines as Grayscale Withdraws Spot ETF Filing
Cardano (ADA) price fell by 2.14% to $0.18704, underperforming a slightly negative broader market, primarily driven by the withdrawal of Grayscale’s ETF filing, removing a near-term institutional catalyst.
Grayscale voluntarily withdrew its US SEC registration for a Cardano Trust ETF on August 7, stating it did not intend to proceed.
This occurred just two days before ADA’s CME futures completed six months of trading—a milestone that could have streamlined a future spot ETF approval. The move eliminated a key near-term institutional demand narrative.
Hence, the market is reacting to the loss of a potential catalyst, reflecting weakened institutional appetite for ADA-specific products in the current cycle.
On-chain data shows the number of wallets holding 1–10 million ADA fell from 2,370 to 2,340 over nine days, indicating large holders are taking profits.
This selling pressure contributed to ADA’s failure to reclaim the key $0.20 resistance level, a psychological and technical ceiling.
Crypto analysts said the recent rally from monthly lows faced exhaustion, with whales capitalizing on the move higher, creating additional headwinds. A stabilization or reversal in the whale wallet count would signal accumulation is resuming, traders said.
At the current price, ADA is testing a critical support zone between the 50% Fibonacci retracement level at $0.18896 and the recent low near $0.185. The 24-hour volume increase of 12.24% confirms the move.
Technical traders said If this support holds, ADA could consolidate between $0.185 and $0.195. However, a breakdown below $0.185 risks a swift move toward the next significant support at $0.170.
The structure is fragile, and the bias remains neutral-to-bearish until ADA can reclaim $0.20. The $0.185 level; a daily close below it would likely trigger further downside toward $0.170.
The combination of a lost institutional catalyst and profit-taking from large holders has halted Cardano’s recent uptrend. The price action is now at a pivotal technical juncture.
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