Why Cardano price is down today?
Key Takeaways:
Cardano token ADA lost 30% since the SEC deemed it security.
The token still holds significant support, but the on-chain metrics are pessimistic.
ADA’s fate depends on the regulatory pressure and the possible delistings that follow.
YEREVAN (CoinChapter.com) — Cardano (ADA) has been on the regulatory blacklist since the US Securities and Exchange Commission (SEC) deemed the coin security on June 5. ADA/USD exchange rate dropped 30% since, stabilizing around the support bar at $0.26 in the European session on June 19.
The bears gained strength and pushed the price below the $0.30 support level on June 9. As a result, the coin traded below its 20,50,100, and 200-day exponential moving averages (EMA). ADA/USD also spiked below the $0.24 support level but recovered hours later.
The price is now attempting to recover, like Bitcoin (BTC), on the back of an oversold relative strength index (RSI) below 30. However, while the flagship crypto registered a 7% uptick in the previous four days, SEC-blacklisted altcoins, including ADA, continued to stall from the growing uncertainty.
Cardano (ADA) on-chain metrics lack potential
According to CoinMarketCap, most Cardano on-chain metrics underscored bearish expectations. The metrics included Net Network Growth, the number of large transactions on the platform, and number of addresses “in the money.”
Moreover, according to another analytical platform IntoTheBlock, over 90% of Cardano addresses, i.e., 4 million wallets, are lost. Typically, wallets in the loss prefer not to sell until they at least break even. However, the bearish crypto landscape and regulatory pressure might induce further selloffs.
Also read: Fidelity May Buy Grayscale, Launch Spot Bitcoin ETF, And Boost BTC Price.
Despite the bearish sentiment, the number of non-zero ADA addresses continued to rise and stood at 4.34 million on June 19.
At the end of the day, the fate of Cardano and other altcoins heavily depends on the regulator’s determination to reinforce its jurisdiction over the crypto market and the delistings that might follow. Thus, investors should closely follow the news and make sensible adjustments to their holdings.
For example, eToro justified its delistings while calling themselves crypto asset supporters.
We remain a supporter of cryptoassets and believe in the importance of offering our users access to a diversified range of asset classes. We are committed to working closely with regulators around the world to shape the future of the crypto industry and champion access for the ordinary investor.
said eToro representatives.
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Filed under: Bitcoin - @ June 19, 2023 6:21 pm