Key Takeaways:
- Robinhood might be delisting Cardano as it reviews its crypto offerings.
- Meanwhile, ADA price dropped over 10% in less than three days.
NEW DELHI (CoinChapter.com) — Fallout of the US SEC’s lawsuit against Binance and Coinbase is impacting the wider crypto market. Robinhood Markets Inc. is currently reevaluating its crypto offerings, which include Cardano (ADA), Solana (SOL), and Polygon (MATIC), among others.
Dan Gallagher, Robinhood’s legal chief, told Congress that the firm might take action depending on the regulatory status of its crypto assets.
Delisting from Robinhood could be a blow to Cardano’s native token, ADA, whose prices are currently on the brink of breaking below a bearish technical pattern called the ‘Rising Wedge.‘
Two upwards-sloping and converging trendlines, joining higher highs and higher lows, form the said structure. Declining trading volumes often accompany a breakdown below the pattern.
The price target of the pattern is equal to the height of the back of the wedge. If the token breaks below the bearish pattern, ADA price could drop over 52% to reach a theoretical price target of $0.16.
ADA Price Plummets Following The Lawsuit News
Meanwhile, ADA price continued to fall after the SEC listed it as a crypto asset security in its lawsuit against Binance. The Cardano token price recovered slightly on June 6 after dropping 6.9% on June 5.
However, ADA price continued its downtrend on June 7, falling 5.1% to a daily low of $0.335. The Cardano token likely reacted to speculations of Robinhood delisting. Furthermore, rumors abound that other investment firms might be considering delisting crypto assets, which will increase the FUD in the market.
Also Read: Is ARK Invest CEO Cathie Wood About To Get Stock-Shocked As SEC Sues Coinbase?
Additionally, the token’s recent price action has forced its 50-day EMA (purple wave) to needle below its 100-day EMA (blue wave) to form another bearish pattern called the ‘Death Cross.‘
Traders consider the pattern a sell signal and an indicator of negative market sentiment. Hence, the ADA price may drop to support near $0.331.
Furthermore, the failure of the immediate support level could push the Cardano token price to reach $0.314, erasing its gains since March this year.
Meanwhile, the momentum oscillator MACD forecasted increasing bearish momentum for Cardano. Expanding histogram bars indicate that the MACD line was moving away from its signal line, indicating a strong bearish presence in the market.
If Robinhood does not delist ADA, the token could ride the resulting relief rally to reach resistance near $0.35. Breaking and consolidating above the immediate resistance might help ADA price target the 20-day EMA (red wave) resistance near $0.37 before retreating.
