SEC Drops Coinbase Lawsuit, Boosts Cardano (ADA) Prospects

The United States Securities and Exchange Commission (SEC) has made a surprising move by dropping its lawsuit against Coinbase. This decision has significant implications for the cryptocurrency market, particularly for Cardano (ADA). In its lawsuit against Coinbase, the SEC had classified ADA as an unregistered security, along with at least 12 other digital assets. This classification had created uncertainty for investors and the broader market regarding the legal status of ADA and other cryptocurrencies.

The decision to drop the lawsuit coincides with the formation of the Crypto Task Force, which aims to establish a clear regulatory framework for the industry. This shift suggests a potential move towards more structured and favorable regulation under Acting Chairman Mark T. Uyeda. The establishment of the Crypto Task Force indicates a willingness to engage with the cryptocurrency industry in a more constructive manner, which could pave the way for greater acceptance and integration of digital assets into the mainstream financial system.

The news has sparked a relief rally for Cardano (ADA), as investors interpret the SEC's decision as a positive sign for the cryptocurrency's future. The potential for a spot Cardano ETF in the US has gained traction, with the chances of approval standing at 70%. This development could result in significant inflows for ADA, further bolstering its position in the market. Additionally, the US Crypto Reserve, which is slated to include ADA along with other major cryptocurrencies, adds another layer of support for the digital asset.

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. 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.

The SEC's acknowledgment of Greyscale's Cardano (ADA) ETF filing further underscores the growing acceptance of ADA within the regulatory framework. This development, coupled with the potential for a spot Cardano ETF and inclusion in the US Crypto Reserve, positions ADA for significant growth in the coming months. As the regulatory landscape continues to evolve, investors will be closely watching how these developments unfold and their impact on the broader cryptocurrency market.