The price of Cardano (ADA) has experienced a 3% decrease within the past 24 hours, with a week-long decline of 9%. This comes after the SEC took legal actions against the cryptocurrency, labeling it as a security. Despite the current turbulence, ADA has gained 38.5% since the beginning of the year. However, the SEC’s actions could potentially lead to exchanges delisting the altcoin, which might significantly impact its price.
Cardano founder Charles Hoskinson makes a bold claim that there is an agenda to promote Central Bank Digital Currencies (CBDCs) at the expense of cryptocurrencies like ADA. While this statement is highly charged, it does draw attention to the possibility that the crypto industry could face severe restrictions in the near future, including ADA. Nonetheless, given that Ripple has managed to hold its ground against the SEC, there is a chance that Coinbase could do the same.
On the brighter side, ADA’s RSI (relative strength index) has dropped below the oversold 30 level, indicating a potential recovery in the future. However, the coin’s declining support level suggests that a turnaround may take some time.
The root of this drop can be traced back to the SEC’s legal actions against Binance and Coinbase, both citing ADA as an unregistered security. This has sparked concerns that ADA could face delisting from several exchanges, which would be devastating for the altcoin. A similar scenario occurred with XRP when it dropped from $0.6 to $0.22 after SEC’s lawsuit against Ripple.
However, the current situation differs from December 2020, as the industry might be more aware that the SEC’s classification of ADA as a security does not necessarily make it legally so. Many members of the crypto community have argued that Cardano is not a security, citing that the coin’s ICO took place in Japan, excluding US residents.
These supporters also point out the inconsistency in labeling ADA as a security while leaving out Ethereum (ETH), which was not included in the SEC’s actions against Binance and Coinbase. This gives hope that ADA might continue to be listed by exchanges, waiting to see how the SEC’s attempts at regulating the crypto industry unfold.
While ADA and other major altcoins face potential challenges, newer altcoins such as ecoterra offer promising prospects. This Ethereum-based recycle-to-earn platform raised over $4.8 million for its native ECOTERRA token in the presale. The platform will reward users for recycling household waste and using renewable energy, all while hosting a marketplace for NFT-based carbon credits.
Ecoterra’s ambitious ecosystem might explain the successful presale, attracting investors to its official website. With the current cost of 1 ECOTERRA being $0.00925, it could potentially rise much higher once listed on exchanges in the coming months, making it one of the most successful new cryptocurrencies of the year.
Source: Cryptonews
