News
Cardano (ADA) is in a catastrophic state, the future of Bitcoin (BTC) will surprise you, Solana (SOL) can still be saved: here’s how
Continue reading U.TODAY
Google News
Cardan he’s probably in the worst shape we’ve seen this year. At present, ADA is moving below all major moving averages on medium-term charts. Unfortunately, the main reasons behind such poor performance are multidimensional and trace back to the fundamentals of Cardano.
The graph looks bleak ADA. The cryptocurrency was seen trading below its 50, 100, and 200-day EMAs. This implies a bearish trend. All of this underperformance contrasts starkly with the optimism that surrounded Cardano at the start of the year. Failure to hold above these ever-important levels likely indicates that there is little buying interest and, therefore, confidence in the ADA, so extreme caution is warranted.
One of the main reasons behind this decline is the high-level competition within the blockchain ecosystem. Although Cardano has made great strides in creating an ecosystem around the platform, it is, notably, catching up to more popular ones, such as Ethereum and Solana.
The future of Bitcoin
Bitcoin it crossed the $70,000 mark but failed to gain a foothold above it. Unfortunately, the market is reacting in a strange way: Ethereum ETF mania brings mixed trends to the market, from extra bullish sentiment to suppressed market performance in a matter of days if not hours.
Bitcoin The price action ran into a strong barrier after an upside break through the psychological $70,000 level, retreating slightly into consolidation around $67,500. From the chart below, it is evident that Bitcoin is tenaciously trying to stay well above the major moving averages, including the 50 and 100 day EMAs.
This has been further confirmed by the sharp surges and declines recorded in volumes in recent days. Wild volume indicates an absolute lack of direction or confidence among traders.
Of course, don’t forget about the Ethereum ETF craze. On the one hand, the approval of Ethereum ETFs sparks new optimism and an overall bullish tone, which has been reflected in skyrocketing prices and activity.
Going forward, these acceptances could help Bitcoin stay at levels from which it can push higher. Next in line is the 50-day EMA at the dynamic support level of $66,683, with the 100-day EMA closing at $64,890. If BTC remains mostly above these supports, it will give the bulls a chance to test the $70,000 upside.
Conversely, breaking these support levels will show continuation of bearish activity, and the next critical support level below it will be $62,521. This will likely increase market uncertainty and could bring substantial volatility within the range.
Solana’s bears are not that strong
Despite the current state of Solanatrading volume suggests that SOL bears are slowly losing their power and maintaining the current pressure on the asset may become impossible in the near future, so recovery may become a realistic scenario.
Solana has seen a flatter performance this week after making contact with the critical $165 level. This comes after a decent cut for the overall market, where most cryptocurrencies lost value. Trading volumes, however, show that the bearish momentum may be starting to weaken.
The chart reveals that the SOL is holding above critical support levels, mainly the 50-day and 100-day EMAs. This remains a positive indication that the asset has remained above these moving averages. They are very indicative, however, that the asset is still in a bullish phase despite the pressure currently on the downside move.
Interest in purchasing SOL remains stable despite the drop in volumes compared to the levels at the beginning of the year. The gradually decreasing bearish volume is an initial positive sign for buyers of regaining control.
With overextended volume at the top, look for a move above to signal a new bullish extension phase. Note: If Solana falls and fails to hold above the $150 support level, it could double down and fall, although this seems less likely now given current indications.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with more than four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.