- Cardano price fell 4.7% below $0.20 after Grayscale withdrew its proposed ADA ETF registration.
- ADA also faces bearish technical signals, with $0.17 emerging as a key downside level.
Cardano price fell 4.7% on Tuesday as ADA dropped back below the $0.20 level. The decline came after Grayscale withdrew its registration for a proposed Cardano ETF.
ADA traded near $0.1885 at the time of writing. The pullback adds pressure to Cardano as traders assess weaker technical signals and the latest changes in the U.S. ETF landscape.
Grayscale Withdraws Cardano ETF Registration
Grayscale withdrew its Cardano Trust ETF registration on August 7. The filing stated that the company no longer intended to proceed with the planned distribution of shares.
However, the withdrawal was not an SEC rejection. The registration statement had never become effective, and no shares were issued or sold under the filing.
Grayscale also withdrew proposed ETF registrations for Hedera and Polkadot around the same time. This suggests the decision was not necessarily linked to Cardano’s market performance or regulatory status alone.
The withdrawal also does not prevent Grayscale from filing a new Cardano ETF registration in the future.
ADA Futures Reach Key Six-Month Milestone
The timing of Grayscale’s withdrawal is notable. CME launched Cardano futures on February 9, meaning the contracts completed six months of trading on August 9.
This milestone could help Cardano qualify under one of the SEC’s generic listing routes for commodity-based exchange-traded products.
Under the relevant standards, an underlying asset can meet one eligibility route if its futures contract has traded for at least six months on a CFTC-regulated designated contract market.
However, meeting this requirement does not guarantee ETF approval.
Grayscale would still need an effective Securities Act registration before shares could be offered. Since the company withdrew its current registration, the six-month futures milestone does not automatically revive the proposed product.
Cardano Price Faces Bearish Technical Signals
Cardano price has also come under pressure from several technical indicators.
Analyst Ali Charts highlighted a decline in the number of wallets holding between 1 million and 10 million ADA. The number fell from 2,370 on August 2 to 2,340 on August 11.
4/6 From a technical perspective, the Tom DeMark Sequential has also flashed a sell signal on Cardano’s daily chart.
It may signal a 1–4 candlestick pullback or the start of a new bearish countdown. pic.twitter.com/g3PFVHnyB3
— Ali Charts (@alicharts) August 11, 2026
The analyst also pointed to a death cross involving Cardano’s MVRV ratio and its seven-day simple moving average. A Tom DeMark Sequential sell signal on the daily chart added another warning sign.
These indicators do not guarantee further losses. However, they show that ADA is facing increasing short-term selling pressure. The $0.20 level remains important for Cardano price. ADA needs to recover this area to improve its near-term outlook.
If selling continues, Ali Charts suggested that ADA could fall toward $0.17. A deeper breakdown could expose the $0.144 area.
Cardano Network Development Continues
The ETF setback does not affect Cardano’s underlying network development.
Cardano activated the Van Rossem hard fork on July 18 after approval through its onchain governance system. The upgrade introduced improvements to Plutus and cryptography while strengthening VRF key uniqueness rules for stake pool security.
The hard fork also marked an important step for Cardano’s governance. It was the network’s first hard fork completed under its full governance framework.
Despite these developments, ADA has struggled to maintain its recent recovery. A sustained move above $0.20 could improve sentiment, while a break below $0.17 would strengthen the bearish setup.
The next major question is whether Grayscale or another issuer will submit a new standalone Cardano ETF registration now that ADA futures have completed six months of trading.
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