Cardano ETF Rumors Spark ADA Surge, XRP Drops
While most cryptocurrencies followed Bitcoin’s downward trend this week, Cardano ETF rumors have given ADA a rare boost. The coin surged 3.59% to $0.909, making it one of the top performers in the top 100 by market cap. The rally coincided with the discovery of a “Grayscale Cardano Trust ETF” registration on Delaware’s state website.
Although Grayscale has not confirmed the filing, the potential for an ADA-focused ETF has fueled strong buying momentum. An ETF could open the door for institutional investors, improve liquidity, and provide Cardano with broader exposure in traditional financial markets.
Why the Market Is Struggling
July’s Producer Price Index (PPI) rose 0.9% month-over-month and 3.3% year-over-year—well above expectations. The inflation surprise has dampened hopes for near-term Federal Reserve rate cuts, leading to a broad selloff in risk assets. The global crypto market cap dropped 3.01% to $3.99 trillion, with Bitcoin down 3.9% and Ethereum down 3.3%. XRP (XRP-USD) took a heavier hit, falling 6% to $3.07.
Cardano’s Bullish Technical Setup
The Cardano ETF rumors come on top of strong technical indicators for ADA:
Relative Strength Index (RSI): At 69, ADA is nearing overbought territory but still shows healthy momentum.
Average Directional Index (ADX): At 27, this signals a confirmed trend.
Golden Cross Formation: The 50-day EMA is above the 200-day EMA, a historically bullish sign.
Immediate support is at $0.86, while resistance lies at the psychological $1.00 level. A breakout could push ADA toward $1.20, based on Fibonacci extensions.
XRP Struggles Despite Strong Trend Signals
XRP’s selloff to $3.07 appears more tied to inflation fears than fundamental weakness. Technical indicators suggest a correction rather than a reversal:
RSI: At 50, XRP is in neutral territory, offering a potential “accumulation zone” for traders.
ADX: At 30, the trend remains intact despite volatility.
EMA Spread: The bullish 50-200 EMA alignment continues to hold, acting as a cushion during pullbacks.
Immediate support stands at $2.95, with resistance at $3.24 and a stronger barrier at $3.39.
Institutional Momentum in Crypto Markets
Beyond the Cardano ETF rumors, the institutional side of crypto continues to heat up. Ark Invest, led by Cathie Wood, bought over 2.5 million shares of crypto exchange Bullish (NYSE:BLSH) during its IPO, valued at $177 million. Bullish operates both a crypto exchange and owns CoinDesk, with shares tripling from the $37 offering price on debut.
Ark also holds:
Over $1.5 billion in Coinbase (NASDAQ:COIN) and Robinhood (NASDAQ:HOOD) shares
$17 million in eToro (ETOR) shares
More than $2 billion in its Bitcoin ETF (ARKB)
Bullish’s successful IPO mirrors the strong debut of USDC stablecoin issuer Circle (NYSE:CRCL) earlier this year. Other exchanges like Gemini and OKX are exploring IPOs, signaling that the bridge between crypto and traditional markets is strengthening.
Outlook
If the Cardano ETF rumors prove true, ADA could see a sustained rally fueled by institutional demand. For XRP, market sentiment hinges on inflation data and Federal Reserve policy shifts. With institutional investments in crypto assets rising, both tokens could benefit from increased liquidity and mainstream adoption in the months ahead.
Looking ahead, market sentiment toward these companies will likely depend on broader economic conditions, sector-specific developments, and their ability to execute strategic initiatives effectively. Investors should continue monitoring quarterly earnings reports, product launches, and industry trends for signals of sustained growth potential. In particular, companies with strong balance sheets and diversified revenue streams may be better positioned to weather market volatility and capitalize on emerging opportunities. While no investment is without risk, keeping a disciplined approach and staying informed can help investors navigate uncertainty, seize favorable market conditions, and potentially enhance their long-term portfolio performance.
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