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ADA, MATIC, SOL face the music as Robinhood delists tokens

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Hours after Robinhood delisted ADA, MATIC, and SOL, the price action of the tokens was not what participants would have hoped for.

ADA, MATIC, SOL face the music as Robinhood delists tokens

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  • The decision to end support for the tokens caused a $387 million wipeout from the crypto market.
  • Several indicators revealed that ADA, SOL, and MATIC’s momentum were bearish.

The prices of Cardano [ADA], Polygon [MATIC], and Solana [SOL] tumbled in double-digit figures after Robinhood confirmed that it was delisting the tokens from its platform. 

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While the U.S. trading platform did not give cogent reasons for its decision, speculation went around that it was linked to the recent SEC “unregistered securities” tag. 

Unlike recently targeted exchanges like Binance [BNB] and Coinbase, Robinhood is duly regulated by the SEC. Hence, it could have been necessary to take such action. 

Regulatory fear leads traders to liquidation

In its statement, Robinhood noted that no other coins were affected. But holders of the ADA, SOL, and MATIC had until 27 June to stop transacting the tokens.

The exchange explained:

“We regularly review the crypto we offer on Robinhood. 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.”

As the sudden move sent shockwaves through the crypto market, the implication of the decision revealed itself.

According to CoinMarketCap, SOL’s value decreased by 22.47% in the last 24 hours. ADA could not escape the heat, registering a 23.06% decrease. As for MATIC, it was down by 26.12% within the same period.

Because of the significant decline in the prices of these tokens, liquidations in the past 24 hours surged to $387 million, with longs suffering the most.

crypto market liquidation including ADA, SOL, and MATIC

Source: Coinglass

Based on the liquidation heatmap from Coinglass above, SOL accounted for $15.15 million out of the total wipeout. MATIC’S liquidation went up to $8.54 million, while ADA was $15.87 million.

Red season for the cohort

Meanwhile, an evaluation of the ADA/USD daily chart showed that the token’s momentum had breached the oversold region, as indicated by the Relative Strength Index (RSI). 

At 17.21, the RSI showed that selling pressure was tremendous. Thus, the momentum was bearish, and slight buying power might do almost nothing to save the price action from the press time state.

Cardano [ADA] price action

Source: TradingView

With a sharp red bar, SOL’s Moving Average Convergence Divergence (MACD) placed sellers in absolute control of the market. 

Realistic or not, here’s ADA’s market cap in MATIC terms

Here, the orange dynamic line was above the bullish, indicating how bullish strides have been completely neutralized. Moreso, both lines were below the zero-midpoint histogram. So, the chances of a quick recovery were close to non-existent.

Solana [SOL] price action

Source: TradingView

The daily timeframe of MATIC was not any better. This was because the Awesome Oscillator (AO) was down to -0.1139. Thus, AO crossing into the negative territory indicated a bearish signal. 

MATIC price action

Source: TradingView


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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