Cardano Falls Below $0.20 as ETF Withdrawal and Bearish Signals Weigh on ADA
Cardano (ADA) traded around $0.1885 on August 11, declining nearly 4.7% over the previous 24 hours and slipping back below the important $0.20 resistance level. The decline comes as investors assess a combination of regulatory developments and bearish technical indicators.
A key development was Grayscale’s withdrawal of its proposed Cardano ETF registration on August 7. The asset manager stated that it no longer intended to proceed with the planned share distribution. Importantly, the withdrawal was not the result of an SEC rejection, and no shares were ever issued under the filing. Grayscale also withdrew similar filings for Polkadot and Hedera products on the same day, suggesting a broader strategic decision rather than a Cardano-specific issue.
Despite the withdrawal, Cardano recently achieved an important regulatory milestone. CME Cardano futures completed six months of trading on August 9, meeting one of the SEC’s generic listing criteria for commodity-based exchange-traded products. While this does not guarantee ETF approval, it could strengthen the path for future ADA investment products in the United States.
From a technical perspective, market analysts have identified several warning signs. Data shared by analyst Ali Martinez shows that the number of wallets holding between 1 million and 10 million ADA declined from 2,370 to 2,340 during early August. He also highlighted a bearish MVRV death cross and a Tom DeMark Sequential sell signal, both of which suggest weakening momentum.
According to Martinez, ADA could potentially fall toward $0.17 if selling pressure continues, with further downside risk toward $0.144 under a more bearish scenario. However, these projections remain analytical estimates rather than confirmed outcomes.
While price performance has weakened, Cardano’s development activity continues. The Van Rossem hard fork, activated on July 18, introduced governance, security, and smart-contract improvements through Cardano’s fully decentralized governance process.
For now, $0.20 remains the key level to watch. A recovery above that threshold could improve market sentiment, while continued weakness below it may keep downside targets in focus.
