On May 29, the U.S. Securities and Exchange Commission (SEC) postponed its decision on the Grayscale Cardano Spot ETF application. The SEC has not announced the next deadline yet, though the full 240-day review period ends on October 22, 2025.
Grayscale initially filed to convert its Cardano Trust into a spot ETF earlier this year. The SEC acknowledged the application on February 24, officially initiating the review window. Citing the need for additional time to evaluate investor protection measures and regulatory compliance, the agency delayed its ruling for now.The SEC’s recent trend of deferring decisions on multiple crypto ETFs, including those for Avalanche and XRP, has raised concerns about the Commission’s timeline and intentions.
Investor Optimism Peaked Before Delay
Before the decision was delayed, investors had high confidence in the ETF approval. On decentralized prediction platform Polymarket, the approval odds had reached 71%, rising from 49% earlier this month.
Past ETF approvals for Bitcoin and Ethereum demonstrated the potential impact of such rulings on price and investor flows. Many anticipated that a Cardano ETF could unlock similar upside, especially as institutional interest in alternative Layer-1 assets grows.
Beyond regulatory hurdles, Cardano is facing internal controversies. Allegations involving founder Charles Hoskinson and a $600 million ADA misappropriation during the 2021 Allegra hard fork have resurfaced. While Hoskinson has denied the claims and promised an audit, there is still no confirmed timeline for the report.
ADA Faces Key Resistance as Price Consolidates Below Trendline
Cardano (ADA) is currently showing signs of consolidation after rebounding from immediate support near $0.735. On the 4-hour chart, ADA is approaching a descending trendline resistance around the $0.765 level. This trendline has rejected price advances multiple times in May, indicating strong seller presence in that zone.
Despite the minor recovery, momentum remains weak. The Relative Strength Index (RSI) stands at 47.3, which is neutral and reflects a lack of strong buying interest. Price also remains below the 50-day exponential moving average, reinforcing the short-term bearish structure.
For a bullish reversal to materialize, ADA needs to break and hold above the $0.765 resistance level with rising volume. If that occurs, the next upside target lies near $0.804. However, failure to clear the trendline could lead to continued range-bound movement between $0.735 and $0.765. A breakdown below the $0.735 support would likely expose the token to further downside toward the $0.72–$0.705 area.
Overall, ADA remains technically pressured, and the market is awaiting a decisive breakout or breakdown to confirm the next directional move.
