ADA tanks 7% post Binance lawsuit: ‘Dystopia,’ says Hoskinson

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  • 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.

ADA price and volume

Source: San­ti­ment

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.

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.

Cardano [ADA] price action

Source: Trad­ingView

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.



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