Three popular altcoins, Cardano (ADA), Solana (SOL), and Polygon (MATIC), have entered a double-digit correction of 11-12% each following the announcement by commission-free trading app Robinhood that it would delist the coins after the U.S. Securities and Exchange Commission (SEC) identified them as securities in its lawsuit against Binance. The decision has sent ripples through the crypto market, raising concerns over the future of these coins and potentially other cryptocurrencies as well.
Robinhood’s legal chief, Dan Gallagher, noted that they are considering their own crypto offerings following the SEC lawsuit. In a statement, Robinhood stated, “Based on our latest review, we’ve decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27th, 2023 at 6:59 PM ET. No other coins are affected and your crypto is still safe on Robinhood.”
The delisting followed the SEC’s identification of 67 tokens in its Binance lawsuit as securities. With the recent price correction, ADA, SOL, and MATIC have seen their weekly losses extend to nearly 25%. The impact of the delisting and the SEC’s focus on regulating the market have weakened investor sentiment and made other exchanges operating in the United States more cautious.
On the technical side of the market, Polygon’s MATIC has given a significant breakdown under the major support levels, with a decline of over 50% from its previous yearly highs of around $1.56. This drop was further influenced by technical selling triggered by the breakout of a long-term pennant structure.
Analysts now worry that if the SEC is successful in its lawsuits against Binance and Coinbase, the consequences for Polygon, Cardano, and Solana could be far-reaching. If the SEC’s classification of Polygon as a security were to hold up, it could indeed be devastating for the network.
In this scenario, ADA, SOL, and MATIC could face limitations in trading within the United States, the largest global cryptocurrency market. As a result, crypto enthusiasts are likely paying close attention to these unfolding events, hoping to safeguard their digital assets and determine the ramifications of this development on the overall market.
The opinions expressed here are subject to market conditions and should not be taken as financial advice. Always do your market research before investing in cryptocurrencies, and remember that the author and publication do not hold any responsibility for personal financial loss.
Source: Coingape
