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

- 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.
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.
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](https://statics.ambcrypto.com/wp-content/uploads/2023/06/ADAUSD_2023-06-06_09-03-46.png)
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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