Cardano Analysis: Price Correction and ETF Outlook on May 21, 2025

Analysis of Cardano’s price correction and ETF speculation on May 21, 2025

On May 21, 2025, Cardano (ADA) experienced significant developments in the crypto market, drawing investor attention. After a 25% monthly surge, Cardano’s price corrected by 4%, reaching around $0.74. This pullback was driven by selling pressure and ETF speculation. Analysts suggest this short-term bearish trend is temporary, with a bullish long-term outlook. Technical analysis shows Cardano testing key support at $0.70 on the daily timeframe, a level that has historically prevented further declines and is seen as a potential reversal point. The Relative Strength Index (RSI) at around 48 indicates a neutral-to-bearish momentum. A drop below $0.70 could push the price to $0.65, but holding this support may lead to a move toward the $0.80 resistance. Fundamentally, speculation around a spot Cardano ETF was a key market driver. Reports indicate that the SEC is reviewing a Cardano ETF application, with a potential decision by August 2025. This has fueled optimism, though delays in the final decision have introduced short-term uncertainty. Currently, Cardano ETPs in Europe, particularly managed by 21Shares with over $72 million in assets, are attracting institutional interest. Whale activity was notable, with on-chain data showing accumulation of ADA at lower price levels, signaling confidence in its long-term potential. Additionally, Cardano’s network upgrades, including improved scalability and lower transaction costs, have boosted adoption. Daily trading volume fell 15% to $869 million, indicating a temporary dip in trader activity. Macroeconomic factors, such as Federal Reserve policies and trade tensions, influenced the crypto market, prompting investor caution. However, Cardano’s strong brand reputation and ongoing technical advancements provide solid support. Some analysts predict that with an ETF approval, ADA could reach $1.32 by the end of 2025. Overall, Cardano’s market on May 21, 2025, reflected a mix of short-term challenges and long-term opportunities. Investors should monitor market developments closely and employ risk management strategies.