Cardano (ADA) continues to bear the brunt of regulatory crackdowns in the United States after the US Securities and Exchange Commission (SEC) labeled it a security in its lawsuits against crypto exchanges Binance and Coinbase.
As a result, Revolut, a fintech company that allows for buying, selling and exchange of cryptocurrencies, has said it will be delisting a number of altcoins mentioned on the SEC’s securities’ list including Cardano, Polygona and Solana.
The company said that buying of Cardano would stop immediately while selling and storing will cease at a later date. Despite this ADA is up 3.58% over the last 24 hours according to data from CoinMarketCap.
Cardano Suffers the Brunt of SEC Regulatory Enforcements
Cardano, the seventh largest cryptocurrency by market capitalization according to CoinMarketCap, loses yet another listing in the US in the aftermath of SEC’s regulatory clampdowns.
In the latest report, Revolut has delisted the altcoin in the US alongside other top-cap altcoins, Solana (SOL) and Polygon (MATIC). The European exchange and payments company had a global customer base with over 10 million personal account holders and 250,000 business users as of 2019.
The number should be higher at the moment, which validates the extensive need across the globe for the company’s payment and exchange services.
#Revolut digital bank is excluding #ADA, #MATIC and #SOL from the US market on regulatory grounds.https://t.co/B2GoWhvlKd#news #N #crypto #btc #eth
— 🧠NeyRo | 1945.bnb (@TimoRo_N) June 30, 2023
Revolute said that buying Cardno on its platform will cease immediately, but deadlines for selling and hodling would be communicated later. This means that the company’s users in the US will be unable to accumulate ADA accross its platforms, but they can continue to hodl and sell for the time being.
The fintech company has, however, cautioned its US customers that once the selling and hodling deadline (which will be communicated) elapses, any ADA holdings they have in their accounts would be sold off automatically, and the proceeds deposited into their individual Revolut accounts.
ADA Remains Bullish
Cardano continues moving upward despite losing its space on Revolut’s US catalog. The Layer 1 token has embarked on a V-shaped recovery, suggesting that there is still more room for the upside.
A V-shaped chart formation is a highly bullish chart pattern that appears when an asset recovers sharply following a steep drop. After dropping 15% from the $0.305 to set a swing low at $0.260, ADA has since recovered 9% of the losses in just seven days.
At the time of writing, Cardano is trading at $0.284 and is fighting immediate resistance from the 50-day Simple Moving Average (SMA) currently sitting at $0.287. Note that a four-hour candlestick close above this level would bolster the buyers to complete the V-shaped recovery to $0.305.
A rise above the technical formation’s neckline at $0.305 would confirm the chart pattern, paving the way for a sustained recovery toward the $0.331 range high. Such a move would constitute a 17.18% uptick from the current price.
ADA/USD Daily Chart
Apart from the chart pattern, Cardano’s upside was supported by the upward facing Relative Strength Index (RSI). The price strength at 55 suggested that the buyers were beginning to take control of the price.
Also validating ADA’s positive outlook was the upward movement of the Moving Average Convergence Divergence (MACD) indicator. This trend-following oscillator has just sent a call to buy Cardano on the four-hour chart. This happened during the early Asian trading hours on Friday when the 12 EMA crossed above the 26 EMA, adding credence to the positive narrative.
Another factor reinforcing Cardano’s bullish thesis is increasing network activity that has been witnessed over the last couple of days. According to on-chain data from Santiment, 24 hout active addresses have been increasing on the Cardano chain as show on the chart below.
Cardano Active Addresses (24H)
According to Santiment, increasing active addresses could be seen as a bullish signal as it indicates growing coin utility without the risk of a potential sell-off.
On the downside, things could go awry for bulls if bears win the ongoing battle causing the price to turn down from the current price. In such a situation, ADA may drop toward the 100-day SMA at $0.277. Breaching this support could see the smart contracts token drop to revisit the V-shape’s swing low at $2.60.
Such a move would represent an 8.8% decline from the current levels. Traders could expect Caradno to take a breather here before making another attempt at recovery.
