Cardano Price Forecast: Hoskinson Hints at Ripple Case Redefining U.S. Securities – How Will ADA React?

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

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

Today’s movement marks a turnaround from last week’s market crash driven by geopolitical tensions, although Cardano remains 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, suggesting that recent volatility is beginning to ease.

Can the SEC vs Ripple Case Replace The Howey Test?

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

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

He called the lawsuit “irrational” and “misguided” from the start and mentioned that 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 turn, Charles Hoskinson, in reaction 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 law.

While Hoskinson’s remark may be delivered with a touch of irony, it does highlight a significant point: the Howey Test, established in 1946, predates the advent of digital assets and cryptocurrencies by several 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 considering the SEC’s past designation of Cardano as an unregistered security during the 2023 lawsuit against Binance.

While the SEC later backed down on these claims, it could completely remove Cardano from the SEC’s regulatory crosshairs. This would reinforce investor confidence, free from the immediate threat of SEC scrutiny.

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

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

Most significantly, the Relative Strength Index (RSI) has returned to negative territory, hovering around 40. Though it has moved away from oversold territory, it exhibits a bearish bias.

The Chaikin Money Flow (CMF) has shown slight improvement, now at -0.015, but it still indicates persistent selling pressure. This metric underscores the ongoing caution among investors, as capital outflows continue to outweigh inflows.

However, the MACD line, which previously held a strong position above the signal line, is losing its momentum. This shift suggests that the bears are gaining control, making a sustained upward movement more challenging in the near term.

Under prevailing negative technical conditions, a retracement back to lower support seems likely, eyeing the $0.3120 level.

More optimistically, Should Cardano manage to sustain its growth, the next significant hurdle would be the 200EMA. Overcoming this barrier would confirm a breakout from the pattern and set the stage for a sustained push to the resistance at $0.6660.

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Although a new regulatory framework would be bullish for the Cardano price, it is unlikely to unfold in the near term.

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