The price of Cardano (ADA) has been declining for the fourth week in a row, dropping over 3% on June 19 alone. The decline is attributed to various factors, including fears of a Federal Reserve rate hike, a recovering U.S. dollar, and recent SEC crackdowns on unregistered securities.
Traders have been assessing the impact of Cardano’s inclusion in the list of crypto assets that the SEC considers unregistered securities, causing a drop in open interest in ADA-linked derivatives to its lowest point since January 2021. Furthermore, more bullish traders have closed their positions by selling ADA, adding to the downward pressure on June 19.
Technical indicators suggest a possible extended ADA consolidation or recovery period ahead, with a potential target of $0.30 in the coming weeks if a bullish scenario plays out. Conversely, a descending triangle breakdown scenario could result in a 12% decline toward $0.226, a significant area of support.
Investors are advised to conduct their own research before making any trading decisions as every investment carries risk.