Cardano Faces Challenges as SEC Labels ADA as a Security
The price of Cardano (ADA) has experienced a 3% decline in the past 24 hours following the initiation of legal actions by the U.S. Securities and Exchange Commission (SEC), which has categorized ADA as a security.
This development has had a negative impact on ADA’s performance, with a 9% decrease in the past week.
Despite this setback, ADA has still managed to achieve a 38.5% gain since the beginning of the year.
However, the SEC’s classification of ADA as a security has raised concerns about potential delistings of the altcoin from exchanges.
If exchanges decide to delist ADA, it could significantly depress its price and impede its future growth.
ADA is not a security.
– The initial sale of the $ADA took place in Japan and was conducted in accordance with Japanese law.
– US citizens were left out.
– #Cardano is the most decentralized network in the top 10.
– No one ever promised anyone a profit from holding ADA.
-…— Cardanians | stake with CRDN3 (@Cardanians_io) June 7, 2023
Charles Hoskinson’s Warning and the CBDC Agenda
Cardano founder Charles Hoskinson has responded to the SEC’s actions by raising concerns about a hidden agenda aimed at promoting central bank digital currencies (CBDCs) at the expense of decentralized cryptocurrencies.
Hoskinson believes that the SEC’s actions are part of a larger process that will eventually lead to the introduction of CBDCs, which could overshadow the growth of cryptocurrencies like ADA.
Cardano Price Prediction: Evaluating ADA’s Recovery Potential
The recent decline in the price of Cardano (ADA) presents an opportunity for investors who believe in the long-term potential of the cryptocurrency.
ADA’s price has slipped by 3% in the past 24 hours, largely influenced by the legal actions taken by the U.S.
The Securities and Exchange Commission (SEC) categorizes ADA as a security.
However, some market analysts view this as an oversold situation, where ADA is trading below its intrinsic value.
An Opportunity for Investors: Oversold ADA
Despite the current decline, some investors may see this as an opportunity to buy ADA at a discounted price.
The altcoin appears to be oversold and undervalued, as indicated by its relative strength index (RSI) falling below the oversold level of 30.
This suggests that a recovery may be on the horizon.
Technical Analysis: Death Cross and Support Level
It’s important to note that ADA’s 30-day moving average has recently fallen below its 200-day average, forming a “death cross” pattern, which typically signals further losses.
However, there is an expectation that these losses will eventually be halted.
The declining support level indicates that it may take some time for ADA to stabilize and regain its upward momentum.
Technical Analysis: Support and Resistance Levels
When assessing ADA’s recovery potential, it’s crucial to consider the support and resistance levels.
Currently, ADA is trading at $0.341594, down by 9% in the past week.
However, it has experienced a significant gain of 38.5% since the beginning of the year.
The key question is whether ADA
Delisting Concerns and Ripple’s Precedent
The primary cause of ADA’s decline is the SEC’s legal actions against Binance and Coinbase, both of which have cited ADA as an unregistered security.
Delisting fears arise from the possibility that ADA may also face similar actions.
However, the cryptocurrency community has quickly responded by arguing against ADA being labeled as a security.
They highlight factors such as ADA’s ICO taking place in Japan and not being accessible to U.S. residents.
Comparisons have also been drawn to the SEC’s actions against Ripple, where the company has vigorously contested the SEC’s claims.
This precedent suggests that Coinbase, a major exchange that lists ADA, could potentially mount a similar defense, allowing ADA to remain listed.
The Future of Cardano
While concerns regarding the SEC’s actions and potential restrictions on the cryptocurrency industry are valid, it is important to assess the landscape with caution.
Hoskinson’s warning about CBDCs may highlight a significant risk, but it is crucial to analyze the evolving regulatory environment and the industry’s response.
As Ripple’s legal battle demonstrates, there is a possibility for successful resistance against the SEC’s actions.
Should Coinbase follow a similar path, ADA may have the opportunity to rally once again and regain its upward trajectory.
The Path to Recovery
The outcome of legal battles and the response to exchanges will play a crucial role in determining ADA’s future.
If Coinbase successfully defends ADA against the SEC’s claims, it could pave the way for potential recovery and the resumption of ADA’s upward.
