• Cardano (ADA) saw its worst week since May 2021, dropping nearly 30% in price.
• The delisting from popular trading platforms like Robinhood and the US Securities and Exchange Commission (SEC) labeling it an unregistered security were two of the primary reasons for this dip.
• Technical analysis suggests that ADA is primed to undergo a sharp recovery in the near future, as it has become highly oversold according to its daily relative strength index (RSI).
Cardano’s Price Drops by 30%
Cardano’s price dropped by nearly 30%, its worst seven-day performance since May 2021, when China banned crypto mining. This was due to its delisting from popular trading platforms such as Robinhood and the US Securities and Exchange Commission (SEC) labeling it an unregistered security.
Technical Analysis Suggests Rebound
Despite this, technical analysis suggests that Cardano is ready for a sharp rebound. Its daily relative strength index (RSI) dropped to 20 which is considered oversold according to March 2020 readings. In addition, Cardano’s market dominance also shows signs of possible recovery ahead.
China Ban on Crypto Mining Affects Cardano
The reason behind this dip in ADA prices can be attributed to China’s ban on crypto mining which led to a 900% jump four months after March 2020’s oversold readings. Moreover, with the Federal Reserve increasing interest rates as inflation persists, excess cash might be removed from the market thus affecting crypto assets like Cardano negatively.
Robinhood Delists ADA from Trading Platform
On June 9th U.S.-based investment platform Robinhood announced they would delist ADA causing a 30% drop in price on the day and making it more difficult for potential mainstream investors in the United States to access ADA tokens. Similarly, crypto exchange Crypto.com also terminated services offered to their U.S.-based institutional clients restricting access even further.
Conclusion
Despite these setbacks, technical analysis indicates that Cardano could still experience a sharp recovery due to its highly oversold state according to RSI indicators as well as other signals suggestive of potential growth in the near future despite unfavorable market conditions caused by recent SEC crackdowns in the United States