The Cardano price rebounded on Wednesday, mirroring the broader cryptocurrency market’s performance. It also jumped after it was included in the Hashdex Nasdaq Crypto ETF. ADA jumped to a high of $0.8428, its highest level since September 22 and 67% above the year-to-date low.
ADA ETF Approval is Key Catalyst
One of the top catalysts for the Cardano ETF is that it became a small part of the HashDex Nasdaq ETF. This is a recently launched ETF that provides investors with exposure to the largest players in the cryptocurrency industry.
Cardano has a 1.23% share in the ETF, with Bitcoin, Ethereum, XRP, and Solana being the biggest constituents. The fund now has over $806 million in assets, an amount that may continue growing.
The other important catalyst for the Cardano price will be the upcoming decision of altcoin ETFs by the Securities and Exchange Commission (SEC). This deadline will be on October 26 this year.
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However, there is a likelihood that the agency will approve the Grayscale Cardano ETF before the deadline. That’s because it will deliver its decision of the Litecoin, Solana, and XRP ETFs before that.
Cardano and Solana have their similarities. As such, there will be no reason for the SEC to approve spot Solana and XRP ETFs and not approve Cardano.
The most likely scenario is one where the ADA price rallies ahead of the ETF approval and then drops afterward. Odds are that the coin will then drop after approval, as the fund is likely to be less popular among investors than other ETFs, such as those focused on Solana, Ethereum, and Bitcoin.
A major issue with Cardano is that it lacks an active ecosystem and is often seen as a ghost chain.
Cardano Price Technical Analysis
The daily chart shows that the ADA price bottomed at $0.7529 in September. This was an important level as it coincided with the lower line of the ascending channel shown in orange.
Cardano price is also hovering at the 50-day and 100-day Exponential Moving Averages. Most importantly, the coin is forming a rising wedge pattern, which occurs when two ascending and converging trendlines intersect.
These two trendlines have a long way to go before they converge, which is typically when the bearish breakout occurs. Therefore, the most likely scenario is where the ADA price jumps in September towards $1 and then resumes the downward trend.
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