The price of Cardano (ADA) has slipped by 3% in the past 24 hours, following the commencement of SEC legal actions which name the altcoin as a security.
At $0.341594, ADA is down by 9% in the past week, although the cryptocurrency has gained by 38.5% since the beginning of the year.
However, such an increase may be undermined if the SEC’s labeling of ADA as a security results in exchanges delisting the altcoin, something which could depress its price considerably.
And with Cardano founder Charles Hoskinson responding to the SEC’s latest actions by claiming the existence of an agenda to push CBDCs at the expense of crypto, things may only get worse for ADA.
Cardano Price Prediction as Founder Charles Hoskinson Warns of CBDC Agenda – How Will ADA Price React?
Assuming that you think ADA will inevitably recover, now would be a very good time to buy the altcoin, given how oversold and discounted it appears to be.
ADA’s relative strength index (purple) has dropped below the oversold 30 level, indicating the eventual approach of a recovery.
Likewise, the coin’s 30-day moving average (yellow) has just fallen below its 200-day average (blue), forming a ‘death cross’ that can signal further losses.
Such losses would have to stop at a certain point, at least under normal conditions, although the fact that ADA’s support level (green) is also declining would suggest that it may be a while yet before they do.
As noted above, the primary cause of this decline is the SEC and its legal actions against Binance and the SEC, both of which have cited ADA as an unregistered security that neither exchange should legally be listing.
As such, there are understandable fears that ADA could soon be delisted from a number of exchanges, at least those with enough of a presence in the United States to attract the SEC’s attention.
This would be devastating for ADA, as exemplified by how XRP fell from around $0.6 to $0.22 in the couple of weeks following the announcement of SEC’s lawsuit against Ripple.
That said, things are a little different now in comparison to how they were in December 2020, with the industry perhaps being more aware that the SEC claiming that ADA (or any other altcoin) is a security does not necessarily mean it legally is a security.
Indeed, many community members have quickly come out to argue that Cardano is not a security, with many highlighting how the coin’s ICO took place in Japan and wasn’t open to US residents.
Others have also noted the apparent inconsistency in naming ADA as a security while leaving out Ethereum (ETH), which was left of the SEC’s actions against both Binance and Coinbase.
For this reason, there remains a good chance that ADA will continue to be listed by exchanges, who may wait to see how the regulator’s latest attempts at repressing the cryptocurrency industry play out.
For Cardano founder Charles Hoskinson, the SEC’s actions are part of a process that ends with the introduction of central bank digital currencies, which will (or so he claims) be pushed on individuals at the expense of decentralized cryptocurrencies.
While Hoskinson’s warning is full of hyperbole (he suggests the US could slip into a dystopia “that would make 1984 look like a vacation”), it does highlight the serious risk that the cryptocurrency industry could be severely restricted in the coming months and years.
This may include ADA, yet given that Ripple has done a good job of fighting its corner against the SEC, there’s no reason that Coinbase couldn’t do something similar.
And if it does, ADA may be just live to rally again.
While ADA and other major altcoins are potentially facing a very difficult period, a number of newer altcoins offer the potential for significant rallies, while escaping the attention of overzealous regulators such as the SEC.
One of the most interesting of these new altcoins is ecoterra, an Ethereum-based recycle-to-earn platform that has raised over $4.8 million in the presale for its native ECOTERRA token.
Due for launch later in the year, ecoterra’s platform will reward its users for recycling household waste at participating recycling points, with users receiving their rewards in the form of ECOTERRA and limited non-fungible tokens.
On top of this, ecoterra will also incorporate a rewards system for users who provide proof of using renewable energy, and it will also include its own marketplace for NFT-based carbon credits.
This ambitious ecosystem helps explain why ecoterra’s presale has been so successful so far, with investors able to join the offering by going to the official ecoterra website and connecting their software wallets.
1 ECOTERRA currently costs $0.00925, although this will climb to $0.01 in just over 21 days.
Of course, this could easily rise much higher once the altcoin lists on exchanges in the next few months, helping it to become one of the most successful new cryptocurrencies of the year.