The Cardano (ADA / USD) is on track for the first weekly declines in three weeks as regulations and the risks of high interest rates reduce the cryptocurrency market. The coin is trading at 1.5240, roughly 38% below its all-time high of $ 2.4770.
ADA price chart
Regulations and volume drop
Cardano and other cryptocurrencies are struggling as the overall regulatory environment clouds. In China, the government has launched a major crackdown on the cryptocurrency sector. Recently, it was reported that the social media accounts of some of the top influencers were deactivated. Similarly, search engines like Baidu have blocked various search terms, including those for exchanges. Some of the exchanges blocked by Baidu are Huobi and Binance,
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Meanwhile, in the United States, more regulations are called for as the number of ransomware attacks increases. Janet Yellen, the Treasury chief, has spearheaded calls for stricter regulations. Similarly, Senator Elizabeth Warren has asked Congress and other regulators to propose stricter regulations.
Cardano’s price has also struggled due to the overall drop in volume. Data compiled by Invezz shows that the volume of the coin was over $ 2.3 billion on Thursday. While this was a large figure, it was below the $ 6.6 billion that was traded on the same day in May. It’s also lower than the February high of $ 12 billion. As shown below, the number of Cardano search times on Google has recently decreased.
Furthermore, the Cardano Foundation and Input-Output have remained relatively moderate in recent weeks. Input-Output promoted three press conferences in May and none this month. Sometimes these press conferences tend to have an impact on the price of a cryptocurrency.
Additionally, there are interest rate concerns after strong US inflation data. posted Thursday. The data showed that the general consumer price index (CPI) increased 5% in May. That was higher than the median estimate of 4.7% and the Federal Reserve’s target of 2.0%. These numbers, along with the tightening of the labor market, point to a tightening by the Federal Reserve.
Cardano price prediction
Cardano price chart
The daily chart shows that Cardano’s price has been in trouble lately. It has struggled to move above the resistance at $ 1.8857 and the support at $ 1.2617. It has also fallen below the 25- and 50-day moving averages. A closer look also shows that he has formed a head and shoulders pattern. Therefore, although the outlook is neutral, there is a possibility that the price of the ADA will decline over the weekend.
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