Three altcoins – Cardano (ADA), Solana (SOL), and Polygon (MATIC) – have entered a double-digit correction following 11-12% each. The selling pressure came suddenly following Robinhood’s announcement of delisting these three altcoins after the U.S. Securities and Exchange Commission named them as securities in its lawsuit against Binance.
Commission-free trading app Robinhood made the announcement on Friday, June 9, stating that its users won’t be able to trade ADA, SOL, and MATIC from June 27 onwards. Dan Gallagher, the legal chief at Robinhood said that they are weighing their own crypto offerings following the SEC lawsuit.
“Based on our latest review, we’ve decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27th, 2023 at 6:59 PM ET. No other coins are affected and your crypto is still safe on Robinhood,” the exchange stated.
The federal securities regulator has mentioned a total of 67 tokens in its Binance lawsuit, which qualify as securities. With the recent price correction, Cardano (ADA), Solana (SOL), and Polygon (MATIC), have extended their weekly losses to nearly 25%.
Will Other Exchanges Follow Robinhood?
The SEC action on Binance and Coinbase has certainly had a strong impact on the crypto market dampening investor sentiment. Other exchanges operating in the United States have also turned vigilant with the possibility of the SEC knocking at their doors anytime ahead.
On the technical chart, we can see that Polygon’s MATIC has given a breakdown under the major support levels. MATIC has experienced a significant decline of over 50% from its previous yearly highs of around $1.56. This decline has been further exacerbated by technical selling triggered by the breakout of a long-term pennant structure.
There are concerns among analysts that if the SEC successfully wins its lawsuits against Binance and Coinbase, it could have severe consequences for Polygon, Cardano, and Solana. The SEC’s classification of Polygon as a security could potentially be catastrophic for the network.
If this were to happen, MATIC, SOL, and ADA may face limitations in trading within the United States, which is the world’s largest cryptocurrency market.