Grayscale Abandons Cardano ETF Plans Amidst Price Drop

Cardano's price has taken a hit after Grayscale announced it would not proceed with its planned Cardano Trust ETF. The decision comes as traders weigh fresh technical warning signals against a changing U.S. exchange-traded fund backdrop.

The token traded near $0.1885 on August 11, down about 4.7% over 24 hours and below the $0.20 level. Analyst Ali Charts flagged three short-term warning signals, including a death cross between Cardano's MVRV ratio and its seven-day simple moving average, alongside a Tom DeMark Sequential sell signal.

The timing of Grayscale's decision is notable as crypto.news had previously highlighted that the six-month milestone for CME's Cardano futures contract would strengthen the route for prospective U.S. products. The futures contract has been trading since February 9, which means it meets one generic U.S. listing route.

Despite this development, Grayscale's decision does not change Cardano's underlying protocol development. The network continues to advance, with recent upgrades introducing Plutus and cryptographic improvements.