- The SEC dropped its lawsuit against Coinbase wherein the agency said that ADA is a security.
- Chances of the approval of a spot Cardano (ADA) ETF in the US stands at 70%.
- The US Crypto Reserve would also include ADA, further establishing its dominance.
The surprise move by the United States Securities and Exchange Commission (SEC) to drop its case against Coinbase, has investors turn their attention to Cardano (ADA). This is significant because in its lawsuit against Coinbase, the SEC had classified ADA as an unregistered security, along with at least 12 other digital assets.
The sudden about-face comes in light of the formation of the Crypto Task Force, which aims to establish a clear framework for the industry. This could signal a shift towards a more structured – and potentially more favorable – approach to crypto regulation under Acting Chairman Mark T. Uyeda.
ADA’s Price: Mixed Signals
Currently, Cardano (ADA) is trading at $0.7265, marking a 1% decline in the past 24 hours. The cryptocurrency reached a daily high of $0.7615, recovering from a low of $0.7112.
The Bollinger Bands suggest that ADA is currently hugging the middle band ($0.7754), indicating moderate volatility. If the price can break through the $0.7754 resistance, it could test the upper Bollinger Band at $1.0315.
Conversely, a breakdown below $0.7112 may push the asset toward the lower band of $0.5193.
Related: Cardano Brazil Partnership: Good News, But ADA Price Tanks
The Relative Strength Index (RSI) sits at a value of 46.08, which means that ADA is neither overbought nor oversold, stuck in neutral territory. If ADA can push past $0.7754, it could rally towards $0.85–$1.00 in the short term. However, a failure to hold $0.7112 as support may lead to a retracement towards $0.65–$0.60.
US Crypto Reserve: A Potential Wildcard
Adding another layer to the story, US President Donald Trump had issued an executive order for the creation of a US Crypto Reserve, with the reserve slated to include Bitcoin (BTC) and Ether (ETH) at its core, along with Cardano (ADA), XRP, and Solana (SOL).
Looking further out, according to data from Polymarket, the decentralized betting platform, the chances of approval of a spot Cardano exchange-traded fund (ETF) in the United States stand at a massive 70%, which could result in major inflows for the digital asset.
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