In the past 24 hours, Cardano’s price has gained momentum, rising by 2.27%. This uptick comes after comments from Cardano CEO Charles Hoskinson, who suggested that the reopened Ripple vs SEC case might lead to a new regulatory framework for securities. This latest movement signals a recovery from last week’s market decline caused by geopolitical tensions, though Cardano is still down 14.32% since last Friday.
This positive trend is mirrored by a 7.03% reduction in trading volume, now at $303.8 million, indicating easing volatility.
The SEC has appealed its case against Ripple following an August 7 ruling that required Ripple to pay a $125 million civil penalty, arguing that the decision contradicts established Supreme Court precedents and securities laws. Ripple’s Chief Legal Officer Stuart Alderoty expressed disappointment in the SEC’s appeal, calling the lawsuit “irrational” and “misguided” from the beginning. He noted that the court had previously dismissed claims of recklessness and fraud against Ripple.
In response to Alderoty’s post, Charles Hoskinson suggested that the Ripple case could potentially replace the Howey Test, the legal standard used to determine whether transactions are investment contracts under U.S. securities law. While Hoskinson’s comment might carry some irony, it highlights that the Howey Test, established in 1946, precedes the era of digital assets and cryptocurrencies by many years.
Cardano could greatly benefit from potential regulatory changes, especially considering the SEC’s previous designation of Cardano as an unregistered security during its 2023 lawsuit against Binance. Although the SEC later retracted these claims, a new framework could remove Cardano from the SEC’s scrutiny, bolstering investor confidence.
Currently, Cardano is showing a bullish falling wedge pattern, navigating a period marked by fear, uncertainty, and doubt (FUD). While there are obstacles to a breakout, technical indicators provide a mixed outlook. The Relative Strength Index (RSI) has dropped to negative territory, hovering around 40, indicating a bearish trend. The Chaikin Money Flow (CMF) shows slight improvement but still points to selling pressure, while the MACD line’s waning momentum suggests bears are gaining control.
Under these conditions, a retracement to lower support levels seems likely, targeting $0.3120. However, if Cardano sustains its growth, overcoming the 200EMA would confirm a breakout and set the stage for a push to the $0.6660 resistance level.
Despite the potential benefits of a new regulatory framework for Cardano, it may not materialize soon. As such, strategic investors might consider diversifying into newer low-cap meme coins with exponential growth potential, such as Crypto All-Stars ($STARS), which offers a unique opportunity through its industry-first meme coin staking platform.
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