The Input-Output Global (IOG), the organization that maintains and develops the Cardano network alongside other foundations behind Solana (SOL) and Polygon (MATIC) is up in arms with the United States Securities and Exchange Commission (SEC) following last week’s allegations.
According to the regulator, ADA, SOL, and MATIC alongside other crypto tokens are securities. A week after the allegations, ADA is reeling in massive losses of approximately 25%, while SOL and MATIC are both down by roughly 29%.
The statements released by the foundations over the last few days have mainly inclined toward improving investor confidence with the founders declaring that they are ready to fight the allegations until the tokens are cleared.
Under No Circumstances Was ADA a Security – Cardano’s IOG
The IOG has explicitly stated that the allegations made by the SEC contain “numerous factual inaccuracies” and that they “will not impact IOG’s operations in any way.
“Under no circumstances is ADA a security under U.S. securities laws,” the IOG said in its response to the SEC filings. “It never has been. Understanding how decentralized blockchains operate is a fundamental component in creating responsible legislation.”
The foundation insists that the SEC is misguided with its “regulation through enforcement” approach which deprives the industry of the much-needed clarity and certainty.
The Cardano “blockchain is transparent, auditable, immutable and fair.” The foundation promises to continue advocating “for regulation that makes sense and honors the transparent and decentralized nature of blockchain.”
Through all the noise, remember that the forges of innovation continue every place you look. One of the papers that I’m most proud of is Minotaur. It’s the backbone of the next generation of cryptocurrencies https://t.co/9jk5GvWLLO
— Charles Hoskinson (@IOHK_Charles) June 10, 2023
Cardano Price Ignites Recovery After Massive Dip to $0.22
Renowned market analyst, Benjamin Cowen has warned his many subscribers, mainly crypto investors that they should brace for an altcoin shakedown in the wake of the renewed SEC market crackdown.
According to Cowen, altcoins are yet to see the bottom and the possibility of further declines is glaring. The analyst refers to the potential declines as an “altcoin reckoning” which could last until the Bitcoin dominance range high is breached.
Meanwhile, Cardano price has recovered to trade at $0.281 on Monday, boating an impressive 6% uptick in 24 hours. With the Relative Strength Index (RSI) currently oversold, bulls make good on the improving technical outlook to close the gap to $0.36 and $0.4, respectively.
Traders looking forward to entering new long positions would be looking for a daily close above $0.28. From here, they can target to cash out at $0.32 while the stubbornly bullish may want to wait until ADA breaches resistance at $0.36 and possibly $0.4.
Nevertheless, it would be prudent to tread with caution now that Cardano price is trading below all the major applied moving averages – that is the 200-day Exponential Moving Average (EMA), the 100-day EMA, and the 50-day EMA.
At the same time, a sell signal observed with the Moving Average Convergence Divergence (MACD) may invalidate the recovery, forcing ADA to wobble between $0.22 and $0.28.
The next buy signal from the momentum indicator will manifest with the MACD line in blue crossing above the signal line in red.
Some key levels for traders to keep in mind include short-term support at $0.25 and major support at $0.22. Holding above these buyer congestion areas gives bulls a fighting chance for gains beyond $0.4 and toward $1.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
