Cardano (ADA) Price Prediction: The US SEC Suspends Approval of Grayscale GDLC, but ADA Recovery Remains Steady

Cardano (ADA) price stabilized around $0.58 as of Thursday when this article was written, rebounding nearly 8% in the previous trading day. Despite the renewed regulatory uncertainty, the SEC has suspended the approval of Grayscale's GDLC fund for further review, but the ADA price still showed signs of recovery. However, derivative data indicates that traders remain optimistic, with bullish bets on ADA reaching the highest level in over a month.

The SEC announced on Wednesday that Grayscale's GDLC is under review, following the agency's approval of the application on Tuesday. The SEC stated in a letter: "This letter is to inform you that, pursuant to Section 431 of the SEC's Rules of Practice (17 CFR 201.431), the Commission will review the authorization action. According to Section 431(e), the order of July 1, 2025, will be stayed until further notice from the Commission."

The SEC continues to state that it will inform the New York Stock Exchange of "any relevant actions taken by the Commission."

Grayscale proposed to convert its GDLC into a spot ETF, which holds a combination of 5 major cryptocurrencies, including Bitcoin (79.90%), Ethereum (11.32%), Ripple (4.99%), Solana (3.01%), and Cardano (0.78%), with managed assets of nearly $774 million.

Despite the renewed regulatory uncertainty, mainstream cryptocurrencies remained strong on Wednesday, buoyed by positive sentiment following President Donald Trump's announcement of a new US-Vietnam trade agreement. ADA rose nearly 8% that day and stabilized around $0.58 during Thursday's Asian early trading session.

ADA Derivative Product Data Bullish

The derivatives data for ADA shows that traders remain optimistic. Coinglass's ADA long-short ratio reached 1.10 on Thursday, marking the highest level in over a month. A ratio above 1 indicates that traders are betting on the asset's price rising.

In addition, the open interest (OI) for ADA surged by 7.04% in the past 24 hours, reaching 861.53 million USD. The increase in buying activity has driven the rise in OI, indicating a strengthened market optimism towards Cardano.

ADA Price Analysis

FXStreet analyst Manish Chhetri stated that the ADA price is currently within a descending wedge pattern, which is formed by two trendlines connecting multiple highs and lows.

ADA rose nearly 8% on Wednesday, and as of Thursday, it is approaching its daily resistance level of $0.58. If ADA breaks through the daily resistance level of $0.58, it may continue its bullish trend until it reaches the upper trendline boundary of its descending wedge pattern. After breaking this pattern, ADA's momentum will extend to the peak of $0.73 on June 11.

The Relative Strength Index (RSI) on the daily chart is 45, pointing to a neutral level of 50, indicating that bearish momentum is weakening. To maintain bullish momentum, the RSI must break above the neutral level.

The moving average convergence divergence (MACD) indicator on the daily chart also showed a bullish crossover on Sunday. This indicator's histogram also indicates that it is rising above the neutral value, showing strong bullish momentum and an upward trend.

However, if ADA faces a pullback, its decline may extend to the next daily support level of $0.49.

(Source: Trading View)