Why is Cardano price down today?
Cardano’s price is down today, continuing its decline for a fourth week in a row amid rate hike fears, an SEC crackdown and a recovering U.S. dollar.
On June 19, ADA’s price fell over 3% to daily lows of $0.257 as traders continued to assess Cardano’s mention in the list of crypto assets that the U.S. Securities and Exchange Commission considers “unregistered securities
In addition, Federal Reserve’s hawkish guidance last week didn’t help ADA price either, with another 50 basis points hike now likely in 2023. Higher rates typically decrease investors’ appetite for risk assets, such as Cardano.
Meanwhile, open interest in ADA-linked derivatives has dropped to around $111 million, the lowest since January 2021.
The past 24 hours have witnessed liquidations worth around $360,000, with long positions losing the most at $341,320. In other words, more bullish traders have closed their positions by selling ADA, which likely added to the downward pressure on June 19.
Furthermore, ADA’s intraday price decline on June 19 coincided with the 0.15% rise in the U.S. Dollar Index (DXY). These inverse moves may break their daily positive correlation coefficient in the coming days from the current yearly high of 0.82
.In other words, ADA may keep declining if the dollar rises in June, now that the latter has entered the rebound stage inside its prevailing symmetrical triangle pattern.
Bullish Cardano traders showed resilience to the SEC crackdown two weeks ago, confirmed by a bullish rejection candlestick on June 5.
ADA’s price has risen more than 15% since but remains “oversold” with the daily relative strength index (RSI) below 30.
These technical indicators hint at a possible extended ADA consolidation or recovery period ahead.
Moreover, a descending triangle can come into play if this bullish scenario plays out. This up-move will present a target of $0.30 over the next few weeks, up 16.5% from the current price levels.
Terraform Labs founder Do Kwon has been found guilty of using a false passport by a court in Montenegro and has been sentenced to four months in prison.
Kwon’s colleague and former Terraform Labs chief financial officer Han Chong-joon was charged alongside him and received the same sentence. The time both men spent in detention will be taken into account, the Montenegro Basic Court said in a statement on its website.
Kwon was charged with attempting to leave the country using a false Costa Rican passport. He reportedly told a Montenegro court that he wasn’t aware the passport he was traveling with was allegedly forged and instead pinned the blame on a Chinese-named agency.
According to a June 17 report from South Korean news outlet Segye Ilbo, Kwon told the Montenegro Basic Court he received his allegedly forged passports and travel documentation, including a Costa Rican passport, through third-party “agencies.”
According to Kwon, because he’d been traveling with his Costa Rican passport “for years,” he had no reason to doubt its authenticity.
In addition to denying forgery of travel documentation, Kwon denied allegations he made any financial donations to Montenegro’s former finance minister Milojko Spajić, the now-leader of the Europe Now party.