Cardano Price Prediction: Hoskinson Hints at Ripple Case Redefining US Securities – How Will ADA Respond?

Over the past 24 hours, Cardano price has found its base with new momentum, up 2.27%.

This follows comments from Cardano CEO Charles Hoskinson that the reopened Ripple vs SEC case could rewrite the securities regulatory framework.

Today’s move marks a reversal from last week’s market crash driven by geopolitical tensions, although Cardano is still down 14.32% since last Friday.

This positive momentum is also reflected in a 7.03% drop in trading volume, now at $303.8 million, indicating that recent volatility is starting to subside.

Can the SEC vs. Ripple Case Replace the Howey Test?

The SEC has officially appealed the case against Ripple following a landmark ruling on August 7 that ordered Ripple to pay a $125 million civil penalty, arguing that the court’s decision violates long-standing Supreme Court precedents and established securities laws.

Ripple’s Chief Legal Officer Stuart Alderoty said on X that the SEC’s call was “disappointing, but not surprising.”

Calling the lawsuit “irrational” and “misguided” from the start, he said the court had already rejected the SEC’s claim that Ripple acted recklessly and that there were no allegations of fraud, victims or losses.

In an interesting twist, Charles Hoskinson, in response to Alderoty’s post, suggested that the ongoing Ripple case could potentially replace the Howey Test.

This legal test, established by the Supreme Court, is used to determine whether certain transactions qualify as investment contracts under U.S. securities laws.

While Hoskinson’s comment may be spoken with a hint of irony, it does highlight an important point: The Howey Test, founded in 1946, predates the advent of digital assets and cryptocurrencies by decades.

Cardano Price Analysis: What Does This Mean for ADA?

Cardano stands to benefit significantly from the potential implications of a new regulatory framework, especially given the SEC’s previous designation of Cardano as an unregistered security during the 2023 lawsuit against Binance.

Although the SEC later addressed these claims, it could remove Cardano from the SEC’s regulatory crosshairs entirely. This would boost investor confidence without the immediate threat of SEC scrutiny.

Cardano’s recent dip has reinforced a bullish falling wedge pattern, reflecting rising volatility as the asset experiences a period characterized by fear, uncertainty and doubt (FUD).

ADA/USDT price chart, falling wedge pattern. Source: Binance.

Significant obstacles remain to a potential breakout, and a closer look at the technical indicators offers a mixed outlook.

Most importantly, the Relative Strength Index (RSI) has returned to negative territory and is hovering around 40. Although it has left oversold territory, it shows a bearish bias.

The Chaikin Money Flow (CMF) has shown a slight improvement, now at -0.015, but still signals continued selling pressure. This measure underlines the continued caution among investors as capital outflows continue to exceed inflows.

However, the MACD line, which previously held a strong position above the signal line, is losing momentum. This shift signals that the bears are gaining control, making sustained upside more challenging in the short term.

Under the prevailing negative technical conditions, a return to lower support seems likely, keeping an eye on the $0.3120 level.

On a more optimistic note, should Cardano manage to maintain its growth, the next major hurdle would be the 200EMA. Overcoming this barrier would confirm a breakout of the pattern and pave the way for continued pressure at resistance at $0.6660.

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