- Cardano’s ADA token recently formed a technical analysis pattern called the ‘death cross.’
- The appearance of the death cross comes at a time of regulatory uncertainty for Cardano and altcoins in general.
- ADA has experienced a significant decline in market value this month, attributed to fears of increased regulatory oversight if ADA is categorized as a security.
Cardano’s ADA token, a competitor to Ethereum, has displayed a technical analysis pattern known as the “death cross” on its daily price chart. The death cross is observed when the 50-day simple moving average (SMA) falls below the 200-day SMA.
While some followers of the technical analysis view the death cross as an indication of a potential market downturn, it should be noted that moving average crossovers have limitations as standalone indicators. Nevertheless, the appearance of the death cross aligns with the current regulatory uncertainties surrounding ADA and other altcoins.
ADA classified as a security by the SEC
In recent developments, the U.S. Securities and Exchange Commission (SEC) classified several tokens, including ADA, as securities in its lawsuit against Binance.
Although Cardano’s development company, IOG, promptly refuted the SEC’s claim, the market sentiment was affected, resulting in a 30% decline in ADA’s market value this month, marking the most significant monthly drop since March 2022. The concerns arise from the possibility of increased regulatory oversight if ADA is categorized as a security.
The regulatory risk primarily impacts altcoin investors, according to Matt Hu, CEO of the crypto asset management firm Blofin. He emphasized that holders who exclusively possess BTC and ETH would have a limited impact.
At the time of reporting, ADA was trading at $0.2545. Additionally, Cardano released Node version 8.1.1 on its mainnet, aiming to enhance network processes by reducing epoch transitions or time periods on the blockchain.
@CardanoFeed - Follow us on X (formerly Twitter)
Stay informed with the latest $ADA Cardano news in real time.FOLLOW NOW!