Cardano price is falling amid possible delisting from Robinhood

2:08 pm 7 June 2023

  • The seventh-largest cryptocurrency on the market, Cardano (ADA), is falling to levels not seen since late March. 
  • According to the SEC, Cardano is a security, and the Robinhood exchange is considering delisting some of the cryptocurrencies designated as securities by regulators - to avoid potential regulatory problems
  • Some investors accuse the project of a lack of clear growth despite a nearly $13 billion market capitalization
  • Onchcain data shows higher activity and accumulation by larger investors

Project developer Charles Hoskinson indicated that the project is developing at the right pace and much of the developers' work is not visible to the 'naked eye' from the outside. More recently, Cardano has been working on the Marlowe project, which could potentially facilitate the entire construction and bring smart contract adoption to the financial sector. The IOHK organization behind Cardano has indicated that Marlowe has already been audited both internally and externally to meet security requirements.

The regulator claims that Cardano is only ostensibly decentralized while nearly 17% of the supply is in the hands of a few entities that regularly conducted sales to finance the development and marketing of the project - through unregistered sales of securities. Cardano was thus supposed to meet the conditions of the so-called Howey test: "investment of assets, in a joint venture, with the expectation of profit derived from the efforts of others."

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

According to IntoTheBlock, Cardano saw an increase in large transactions over the past 24 hours where the total number of Cardano token (ADA) trades increased by 5.8 million to 63.57 million Cardano (ADA) . The number of large transactions, above $100,000, increased to 14,780 or (4,790 more than the previous day). Buying activity in terms of Cardano inflows into large portfolios also increased by 123.6% yesterday compared to June 5 (part of the transactions were due to portfolio splits - a total of 6.61 million net inflows). 

CARDANO price again fell below the SMA200 (red line) suggesting a possible test of $0.30 where we see previous price reactions and the 71.6 Fibonacci retracement of the December 2022 upward wave. The chart also somewhat resembles an head and shoulders formation, with the neckline running through at the aforementioned $0.30 level. Source: xStation5

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Xtb logo

Join over 1 000 000 XTB Group Clients from around the world.

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
userBranchSymbol cc 2 March 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
__hstc cc 7 March 2023

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence