In the past 24 hours, Cardano‘s ADA cryptocurrency has seen an 8% rise, moving to $0.282965 and marking a partial recovery from a sharp fall over the weekend. The weekend’s downturn came as market makers pulled liquidity from the second exchange in response to the SEC’s actions against Binance, and Robinhood removed the altcoin from its listings.
Cardano’s ADA, on the Mend?
As a result, ADA suffered a 25% drop last week, and so far this year, the altcoin has increased only 15%, compared to a 57% and 46% increase for BTC and ETH respectively. Moreover, without any significant signs of whale purchases, it remains uncertain whether the altcoin will experience substantial recovery in the near future.
ADA’s charts and indicators reflect some real weaknesses at the moment, notably as the crypto’s 30-day moving average plunged sharply below the 200-day average over the weekend. Similarly, ADA’s Relative Strength Index fell below 20 over the weekend, and while it has begun to rise again, it continues to linger below 50, a level that may prove challenging to overcome in the coming days.
This worry is further exacerbated by the fact that ADA breached some significant support levels over the weekend, falling below $0.275 and then $0.250, a move that may weaken its stability against further sell-offs this week.
Security Claims!
As previously stated, ADA is currently suffering significantly because the SEC has mentioned it as a security in new legal proceedings against Coinbase and Binance. This not only caused ADA’s value to drop, but also led to Robinhood delisting the cryptocurrency due to its classification as a security.
Other US-based exchanges could potentially follow suit, potentially causing further declines in ADA’s value. However, it’s important to note that the SEC’s naming of ADA as a security doesn’t necessarily mean it is indeed a security. This was highlighted in the Ripple-SEC case, where Ripple is doing a commendable job defending against the regulator’s claim that XRP is a security.
