Cardano (ADA) Holds Firms Despite Regulatory Turbulence

Cardano successfully navigates through regulatory turbulence, even as news of impending chaos continues to surface.

Blue man hanging on a rope above fiery inferno.
Created by Gabor Kovacs from DailyCoin
  • Effects from the SEC’s crypto crackdown continue to linger. 
  • The regulator is forcing exchanges to delist tokens. 
  • Despite negative news piling up, Cardano continues to display strength. 
  • However, investor sentiment suggests something different. 

The SEC’s unwarranted crypto crackdown placed immense pressure on the crypto industry in the United States, specifically targeting tokens like Cardano, Solana, and Polygon. This led to Crypto assets and exchanges facing an existential threat in the country as the regulator compelled them to make tough decisions to ensure their survival.

As a result, the crypto market experienced mounting sell pressure, leading to significant drops across the board, with tokens like Cardano plummeting as much as 50%. However, with the market showing signs of recovery and TradFi’s newfound interest in crypto, the worst may be behind us as Cardano successfully navigates through regulatory turbulence, even as news of impending chaos continues to surface.

Cardano Stands Tall

Following the SEC’s classification of Cardano as an unregistered security, several US exchanges were forced to delist the token to operate in the country. While major exchanges like Coinbase, which the SEC also sued, decided to take a stand against the regulator and continue offering ADA, platforms like Robinhood succumbed to the regulator’s demands in the hopes of mitigating further scrutiny.


Robinhood’s decision to delist ADA prompted other platforms like eToro, Bakkt, and now Revolut to follow suit, citing regulatory uncertainties. While Robinhood’s delisting led to Cardano’s ADA plunging to its lowest point this year at $0.22 in June, recent negative news has had minimal effect on the asset. 

Cardano price chart for June 2023.
Cardano Monthly Price Chart (June 5 – July 5). Source: CoinMarketCap.

Cardano has since displayed remarkable strength and has repeatedly rebounded despite its delisting spree. The token recently reclaimed the $0.3 level before returning to $0.295 at press time, with a daily trading volume of $228 million. Given its recent performance, it appears the asset has already priced in future capitulation and delisting events, including now-defunct lender Celsius’ $26 million ADA sell-off plan.


However, it’s worth noting that ADA has been exhibiting bearish patterns despite its resilience. IntotheBlock shows investor sentiment remains mostly bearish, as indicated by on-chain, exchange, and derivatives data. 

Cardano Investor Sentiment chart.
Cardano Investor Sentiment. Source: IntotheBlock.

Additionally, as per CoinGlass data, at press time, Cardano’s open interest stood at $115 million with a long-to-short ratio of 0.9, suggesting that investors are selling rather than buying. 

On the Flipside

Why This Matters

Cardano’s ADA has been showing remarkable strength despite the fear and uncertainty in crypto markets following the SEC’s crackdown. Recent developments suggest Cardano’s ADA will persevere despite negative news surfacing. 

Catch up on Cardano’s DeFi developments:

Cardano DeFi TVL Resurges, New ATH, Volume Spike, and More 

Read how the NFT market is doing: 

NFT Market Sees Worst Liquidation Event in History, BAYC, Azuki Holders Hit

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.