Cardano price is dangling on the edge of a tall cliff following yet another investors rout bolstered by the crackdown lodged on the crypto market by the US Securities and Exchange Commission early this month.
ADA, the token native to the Cardano ecosystem, was mentioned among the 64 cryptocurrencies the SEC alleged to be securities.
The regulator filed several lawsuits implicating two of the most prominent exchanges, Binance and Coinbase, for listing and facilitating the trading of unregistered security tokens.
As expected, such developments tend to cause instability in the market, with Cardano price falling from highs above $0.45 toward the end of May to $0.22 on June 10.
Despite the many recovery attempts over the last couple of weeks, it has been increasingly difficult to sustain the trend reversal above $0.30. ADA is trading at $0.275 on Wednesday amid the intensifying danger of losses extending to $0.22.
Robinhood Delists ADA SOL and MATIC
Leading trading app Robinhood triggered a minor sell-off in Cardano (ADA), Solana (SOL), and Polygon (MATIC) on Tuesday as it removed them from the list of tradeable assets. The platform announced on June 9 that it was going to end support for the crypto tokens on June 27.
The decision by Robinhood followed the SEC’s implication of SOL, ADA, and MATIC as security tokens, which also led to the suing of Binance and Coinbase. It is worth mentioning that the exchanges were accused of a lot more than just listing tokens the SEC considered to be securities, like commingling customer funds in the case of Binance.
Following the delisting, users on Robinhood can still buy and sell 15 crypto tokens, including Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).
Where is Cardano Price Heading?
The Moving Average Convergence Divergence (MACD) indicator is holding firmly to a buy signal flashed during ADA’s first recovery attempt from support at $0.22. Another daily close below the immediate resistance at $0.30 would mean a stronger bearish grip.
In other words, it would become a daunting task to reclaim the resistance, thus leaving Cardano price vulnerable to losses targeting $0.22.
With ADA significantly below all the applied moving averages, including the 50-day EMA, the 100-day EMA, and the 200-day EMA, odds may continue to favor the ongoing downturn.
The Relative Strength Index (RSI) sudden retreat from near-overbought conditions reveals that sellers have the upper hand. Cardano Bulls may try to contain the losses in the upper range of the region between $0.25 and $0.30.
Traders eyeing new buy orders in ADA must wait until ADA either exhaust the uptrend by tapping out at $0.22 or rebounds above $0.30. On the upside, resistance would be anticipated at $0.32, where the 50-day EMA is grounded, at $0.36 and $0.40, respectively.
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