Cardano (ADA) has experienced a significant downturn in recent days, with the cryptocurrency plummeting by a staggering 24% in the past 24 hours alone.
This downward trend has had a ripple effect throughout the altcoin market, leading to liquidations nearing $400 million.
Investors are growing increasingly apprehensive about ADA’s future prospects, fearing a potential clash with the U.S. Securities and Exchange Commission (SEC).
The price of Cardano (ADA) has taken a sharp nosedive, experiencing a significant drop of 23% within a single day. This alarming decrease has added to the concerns of investors, who are now worried about the potential repercussions of a clash between Cardano and the SEC.
The negative sentiment surrounding ADA has spilled over to other altcoins, resulting in a broader market decline and triggering liquidations amounting to approximately $400 million.
The recent SEC lawsuit against Coinbase has sent shockwaves throughout the cryptocurrency industry. The regulatory agency claims that certain altcoins, including Cardano (ADA), meet the criteria to be classified as securities.
This lawsuit has contributed to the growing uncertainty surrounding ADA’s regulatory status and has fueled market anxieties.
However, Input Output Global, the firm behind Cardano’s ecosystem, has released a blog post refuting the claims that ADA is a security.
Data from Coinglass reveals a significant increase in market liquidations, nearing the $400 million mark, for the same period as Cardano’s steep decline.
The mounting liquidations further compound the market’s anxieties, as traders and investors grapple with the potential consequences of ADA’s tumultuous price action and the ongoing SEC lawsuit.