ADA tanks 7% post Binance lawsuit: ‘Dystopia,’ says Hoskinson
- After being labeled as an unregistered security, ADA’s price fell sharply.
- The Cardano founder opined that the regulator was authoritarian.
Shredding 7.64% in the last 24 hours was not something Cardano [ADA] holders would have imagined at a time when the token was having a relatively good season. But the U.S. Securities and Exchange Commission (SEC) had other plans.
Realistic or not, here’s ADA market cap in BTC’s terms
In the latest round of regulatory proscription, the agency shortlisted ADA, Solana [SOL], Polygon [MATIC], Binance Coin [BNB] among other cryptocurrencies, as securities. Although the lawsuit was directed at Binance, ADA appeared on the list of assets that brought about the allegations.
ADA: Caught in the crossfire
ADA reacted with the aforementioned decrease in value. The token’s value also increased by 121%. Typically, the volume considers the number of tokens or coins that took part in transactions that have occurred within a time frame.
But with ADA’s price action, it was obvious the increase in transactions was mostly due to an increase in sell-offs. Thus, the volume created strength for a downward trend.
On 5 June, Cardano’s co-founder Charles Hoskinsion commented on the regulatory action. In his tweet, Hoskinson noted that the complaints against Binance and the assets seemed like a political witch-hunt.
With respect to Binance, I'm reading through the SEC complaint. It's over 130 pages, but seems like the next in a series of steps to implement chokepoint 2.0 in the United States. The end goal is a agenda based CBDC partnered with a handful of massive banks and end-to-end control…
— Charles Hoskinson (@IOHK_Charles) June 5, 2023
While calling for unity around the crypto sector, and explaining why the SEC has been acting like a dictatorial agency, Hoskinson said,
“It’s always the same fight between freedom and authoritarianism just with different players, technology, and words. It does seem like this event is a perfect opportunity for the entire industry to set aside it’s fragmented nature and unite for a common sense set of rules and guidelines that can prevent the United States from slipping into a distopia that would make 1984 look like a vacation.”
It’s sell-off season
At press time, the Moving Average Convergence Divergence (MACD) showed that sellers were now in control. As a technical indicator, the MACD measures the momentum of an asset.
And at the time of writing, the value of the indicator was negative, with the 12-day EMA trending below the 26-day EMA.
While positive values indicate that momentum could be bullish, a negative MACD indicates downward momentum. Therefore, ADA’s price could still falter from the fall to $0.35.
How much are 1,10,100 ADAs worth today?
In addition, the Chaikin Money Flow (CMF) had decreased to -0.08. As a measure of accumulation and distribution, a negative CMF indicates that more exit had taken place than accumulation based on the 21-day closing price.As it stands, ADA may continue to feel the effect of its name being in the Binance FUD. However, time will tell when the token will recover from its bearish outlook.