Cardano (ADA) Selloff Picks Momentum After Been Implicated in Coinbase Crackdown

Cardano (ADA), the Proof-of-Stake (PoS) layer-1 blockchain is witnessing one of its worst weeks for the year after two consecutive days of massive price plunges. The digital currency is down by 1.52% over the past 24 hours to $0.3506, with the weekly growth extended to more than 6%.

Cardano 7-Day Chart. Source: Highcharts.com

The Cardano coin saw a rapid slump in its price after it was named a security alongside Solana (SOL), Polygon (MATIC) and Filecoin (FIL) amongst others. While the coin has started consolidating following the Binance news from yesterday, its investors were once again rattled as the SEC repeated its claims that it was one of the cryptocurrencies being traded as an unregistered securities by Coinbase Exchange.

Factors to Reboot Price Outlook

At the moment, Cardano sellers have joined forces to break key support with the possibilities of revival in the short term appearing very bleak. With the regulatory onslaught a more encompassing concern, the corporate resilience amongst the most impacted crypto tokens will be one of the biggest factors that can help revert the current bearish slump at this time.

Another major factor that can help propel a renewed growth in Cardano will be the underlying utility that the protocol is currently showcasing. Cardano is known as one of the most proactive PoS networks around with its latest protocol upgrade embodied in the Marlowe smart contract tool.

Cardano has a dedicated hoard of supporters whose interests lie in the opportunities they can get from the emerging smart contracts and DApps making their way to the Cardano protocol.

For what it is worth, Cardano is building its system to serve as the most robust competitor to Ethereum as the worthy smart contract hub. To beat Ethereum in the game, Cardano has also floated its Hydra Head, a layer-2 protocol that is designed to help scale transactions on the platform to drive usability.

Hopes for the Broader Industry

Despite the ongoing onslaught in the industry, many key stakeholders have remained focused on building their product stack to drive more organic adoption of blockchain technology. Despite being one of the exchanges being sued by the SEC, Binance has launched support for Bitcoin Ordinals as it showcases that it is set to conduct its business as usual.

Source