Key Takeaways:
- Robinhood announced its decision to delist Polygon (MATIC), Solana (SOL), And Cardano (ADA).
- The tokens’ price plummeted following the news.
PATNA (CoinChapter.com) — Robinhood has announced it will delist Cardano (ADA), Polygon (MATIC), and Solana (SOL) from its platform.
The firm stated that the decision was the result of its latest review. However, it seems likely that the decision resulted from the fallout of the US Security and Exchange Commission’s legal action against Binance and Coinbase.
Per Robinhood’s announcement, the firm would “end support” for the three crypto tokens on June 27 at 6:59 PM (Eastern Time). Users can continue to trade or hold ADA, SOL, and MATIC tokens until the deadline or transfer the holdings to other wallets.
However, after the deadline expires, Robinhood will sell users’ ADA, SOL, and MATIC token holdings at market value and credit the proceeds to the users’ “Robinhood buying power.“
Moreover, the firm assured users that the action would only impact the mentioned tokens while other tokens remained safe.
We protect all the coins owned by our customers with industry-leading security. Nearly all of your crypto is held in cold storage, and we never lend your coins or leverage against them.
Robinhood assured users.
Robinhood noted that users need not sell their token holdings and can transfer their SOL, MATIC, and ADA tokens to different wallets.
Dan Gallagher, Robinhood’s legal chief, had told Congress that the firm might take action depending on the regulatory status of its crypto assets, according to a June 7 Bloomberg report. The SEC had deemed Cardano, Polygon, And Solana unregistered securities in its lawsuit against Coinbase and Binance.
Cardano, Polygon, Solana Price Nosedive After Robinhood News
Crypto markets are very susceptible to news, both good and bad. Hence, news of Robinhood delisting the three tokens resulted in their prices jumping off a cliff. ADA, MATIC, and SOL prices registered a double-digit drop in prices.
ADA Price Sheds A Quarter Of Its Price After Robinhood Delisting News
Cardano’s ADA token dropped over 25% to a daily low of $0.22. Moreover, June 10’s drop resulted in the token extending its WTD losses to over 42% from the weekly high of $0.38. ADA’s recent losses wiped away the token’s 2023 gains.
ADA bulls tried to pare some losses, but the Robinhood delisting FUD has put the bears in control. Should the downtrend continue, ADA price could drop to the support near $0.227, reaching price levels the Cardano token last saw in Jan 2021.
Moreover, failure of the immediate support level might result in the Cardano token falling to test the support near $0.2. In the process, ADA would likely erase all its gains since Jan 4, 2021.
The relative strength index for the Cardano token dropped below 30, making ADA oversold. Traditionally, traders consider oversold RSI levels an indicator of an impending bullish trend reversal.
ADA would likely face a lot of difficulty mounting a bullish rally, given the strong bearish pressure against the token. However, if the Cardano token manages to start a rally, the ADA price would likely face resistance near $0.264.
Breaking and consolidating above the immediate resistance could help the ADA token price rise to $0.3 and recover some of its recent losses.
SOL Price Apes ADA, Drops Over 26% In Less Than 24 Hours
Ethereum rival Solana’s native token SOL mimicked ADA’s price action, shedding over a quarter of its price since trading began on June 10. SOL price dropped over 26% to reach a daily low of $12.8 before recovering some of the losses.
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Unlike ADA, the Solana token remained positive in terms of YTD gains even at the multi-month low of $12.8. SOL price extended its week-to-day losses to 42%, marking its worst week since Nov 7, 2022. However, bulls would struggle against the Robinhood delisting FUD-fuelled drop in SOL prices.
The Solana token price currently has support near $14. However, the Robinhood delisting FUD could result in the SOL price breaching the immediate support and dropping nearly 17% to $12.3 before recovering.
The RSI for the Solana token became oversold after crossing below 30, clocking at 25.62 on the daily charts. Traders often consider the occurrence an indicator of an impending trend reversal favoring the bulls.
Since the SOL price survived the FTX-Alameda contagion, traders might buy the dip, hoping for profits once the Solana token recovers from the FUD. Hence, once buyers enter the market, SOL price might rise to the resistance near $15.8.
Breaking and consolidating above the immediate resistance might help the Solana token price target the resistance near $17.4 before downside corrections pare gains.
MATIC Price Reaches Lowest Level In 11 Months
Meanwhile, Polygon’s native token, MATIC, saw its price drop to its lowest level since July 4, 2022. The Polygon token price fell nearly 30% on June 10, forming a daily low near $0.5 before bulls pared some losses later in the day.
Moreover, MATIC price painted its worst weekly candle since the week of the market crash in May 2021, dropping nearly 43% from June 5’s high of $0.893. However, the Polygon token price erased its 2023 gains on June 9 after closing the day with over 7% losses, hours before the Robinhood announcement.
A continued sell-off might result in MATIC price dropping to support near $0.553. Moreover, failure of the immediate support level could result in the Polygon token falling 16.5% to test the support level near $0.48 before recovering.
Meanwhile, the relative strength index for MATIC reached 16.83 on the daily charts as the Polygon token price tanked. Ideally, traders consider oversold RSI levels an indicator of an upcoming bullish trend reversal as buyers enter the market to buy the dip following an extended downtrend.
However, it would be difficult for traders to start buying based on only one indicator. Yet, if the Polygon token price starts rallying, it would first face resistance near $0.61.
Breaking and consolidating above the immediate resistance level could help MATIC price target the resistance near $0.68 before downside corrections pare gains.
