Cardano (ADA) has recently experienced a significant price crash following Robinhood’s announcement of its delisting. This decline is not unique to Cardano, as other major cryptocurrencies have also faced sudden downturns. The crypto market has been shaken by regulatory actions, leading to increased volatility and uncertainty.
One such regulatory action is the Securities and Exchange Commission (SEC) classifying Cardano’s ADA as a security, causing speculation about the token’s future. However, Charles Hoskinson, the founder of Cardano, strongly disagrees with the SEC’s claims, stating that ADA does not meet the criteria to be classified as a security.
Insights from Finance Experts:
Sebastian Purcell, CEO of 1.2 Capital Management: Sebastian Purcell, an analyst, believes that the worst is over regarding the SEC issue. However, he emphasizes that the outcome of the ongoing Ripple v. SEC lawsuit could have implications for Cardano. If the outcome favors Ripple, ADA may experience a significant spike. Conversely, if the outcome is not in Ripple’s favor, ADA may struggle to surpass its all-time high even in a future bull run.
Frank Corva, Senior Analyst for Digital Assets at Finder: According to Frank Corva, predicting Cardano’s year-end value is challenging due to regulatory uncertainties. He suggests that Cardano’s price movement will likely align with overall market trends but advises considering specific factors such as development progress, technological advancements, market adoption, competition, and potential regulatory changes. He believes that the recent sell-off in ADA was likely a fear-based reaction to bad news.
Azzam Sheikh, Digital Strategist at Money Advisor: Azzam Sheikh emphasizes the significance of the Hydra update for Cardano. This upgrade aims to enhance transaction speed, reduce latency, and increase throughput. If the implementation goes according to plan, Sheikh predicts that ADA’s price could range from $0.472 to $0.716 by the end of the year, with an average of $0.552.
Overall, the market’s uncertainty surrounding regulatory actions and legal battles has impacted Cardano’s price. Monitoring ongoing developments, including the outcome of the Ripple v. SEC lawsuit and Cardano’s progress in development and market adoption, will be crucial in understanding ADA’s future trajectory and potential for recovery.
