Cardano (ADA) Drops 6% as Robinhood May Delist Tokens Amid SEC Action

Following recent legal actions by the US Securities and Exchange Commission (SEC), Cardano (ADA), Solana (SOL), and Polygon (MATIC) may be delisted from the Robinhood trading platform.

According to Bloomberg, Robinhood has stated that it may delete currencies linked in the SEC case against the two leading cryptocurrency trading platforms, Binance and Coinbase. If a cryptocurrency is considered to be a security and has not been registered with the SEC, it is prohibited for customers to trade it on US-based exchanges like Robinhood.

As a result, if the SEC case is successful, Robinhood may be forced to delist these cryptocurrencies in order to comply with US securities regulations. According to the SEC, a number of popular cryptocurrencies, including Cardano, Solana, and Polygon, are securities that have not been properly registered. 

Cardano Rejects SEC Claims that ADA is a Security

Following the Securities and Exchange Commission's (SEC) designation of numerous popular cryptocurrencies, including Cardano (ADA), as securities in the lawsuit against crypto trading site Binance, the CEO of Cardano Foundation stated his organization's displeasure.

Specifically, as previously reported, Frederik Gregaard's comment on the subject, in which he advocates for regulatory clarity and opposes the agency's recent qualification of ADA as a security, was shared on June 6 by the Cardano Foundation.

Gregaard claims the following:

“The Cardano Foundation disagrees with the recent qualification of ADA as a security under US law. We look forward to the continued engagement with regulators and policymakers to achieve legal clarity and certainty on these matters.”

Further, Gregaard continued,  “Meanwhile, we will keep contributing to the vibrant and diverse Cardano ecosystem."

The agency recently filed charges against cryptocurrency exchanges Binance and Coinbase, alleging that they marketed digital assets such as Cardano, Solana (SOL), Polygon (MATIC), Binance Coin (BNB), and others without first registering those currencies as securities.

As the news spread as swamp fire, Cardano and the related crypto tokens fell significantly in value. Let's see what ADA holds after the US SEC claims.

Cardano (ADA) Price Analysis

Cardano (ADA) is currently trading at $0.324763 with a 24-hour trading volume of $427,024,264. This indicates a -6.17% drop in the last 24 hours and a -11.19% drop in the previous 7 days. Cardano has a market valuation of $11,355,984,144 with a circulation supply of 35 billion ADA.

On June 7th, the ADA price demonstrated a significant collapse from the channel pattern's support trendline, which had been carrying an uptrend in this currency for the previous five months. This breakdown increases market selling pressure and offers sellers new barriers to pressurise prices to lower levels. Here's how this pattern could lead to even more Cardano coin speculation.

A bearish breach below the support trendline implies that the ADA price is likely to continue its previous slump. The price has fallen 6.5% since the breakdown point and is now trading at $0.329 a share.

The daily RSI slope has dropped to the oversold level, indicating that the sellers have been too aggressive for the time being, and a little retreat or consolidation is expected to stabilise the price action.

Source: TradingView

Conclusion

In conclusion, If the selling pressure continues, the ADA price will break through minor support around $0.323 and fall below the $0.3 level. This psychological support will not be easily destroyed, thus the price will likely stabilise above it for a few days before falling further.