Ethereum
Solana (SOL) Ready for $160, Ethereum (ETH) Performance Raises Questions, Will Cardano (ADA) Break This Resistance?
Read U.TODAY on
Google News
Solana is showing signs of preparing for a potential breakout above the $160 price mark. The fact that the aforementioned price level coincides with the 50 EMA makes it a bit more important for the price.
Solana faces the 50-day EMA at around $160, a key resistance level in technical analysis. This EMA serves as an indicator of medium-term market trends and has historically acted as a robust resistance or support level depending on market direction. For Solana, capturing this mark could signal strong bullish sentiment and potentially pave the way for higher price levels.
However, the journey to break this resistance is hampered by declining trading volume. Typically, a decrease in volume can indicate a lack of conviction in the direction of the market, suggesting that traders are cautious and potentially waiting for more definitive signs before committing to larger positions. This could mean that by Solana Approaching $160 will require a significant catalyst or market event to build confidence and trading activity.
Another technical aspect to watch is the potential “neckline” breakthrough at around $160. This term refers to a key level in chart patterns, such as head and shoulders or inverse head and shoulders, which, when broken, can result in significant price movements. A decisive close above this level could validate the bullish forecast and trigger a new wave of buying interest.
Will Ethereum do it?
Ethereum is currently unable to cross the 100 EMA threshold. A key observation is its inability to break above the 100-day EMA, a technical indicator that often serves as a measure of the asset’s medium-term trend.
Currently trading below $3,100, Ethereum is struggling to establish a clear uptrend. This price level is crucial because staying below this level introduces considerable risks to Ethereum’s valuation. A sustained position below 100 EMA not only highlights the market’s downtrend but also creates a potential scenario where Ethereum could test the 50 EMA.
The potential move towards the 50 EMA is critical. This indicator is often considered an indicator of a short-term trend. A decline towards this level could reinforce the bearish outlook, suggesting that the price decline could be a matter of time.
The resistance of Cardano
Cardano is facing an important moment on the chart, facing an important resistance level at $0.46. This resistance has acted as a formidable barrier, preventing the price from rising in recent weeks. However, the latest trading activity indicates that a potential breakthrough could be on the horizon.
The $0.46 resistance level is not just a random number; it has been tested several times over the past few months, making it a focal point for traders. Every time ADA approaches this level, selling pressure increases, pushing the price lower. However, current market dynamics suggest that a change may be underway.
A recent increase in trading volume has been seen as ADA once again approaches this critical resistance level. An increase in volume generally indicates increased interest from traders and can often precede large price movements. If buyers can overpower sellers, we could see ADA break through this resistance level.
Additionally, the Relative Strength Index shows that ADA is heading towards a neutral point, with the current reading near 50. This suggests that selling pressure is easing and buying interest is increasing, providing a balanced force that could tilt in favor of the bulls.
The RSI’s move toward a midline of 50 is particularly significant because it implies that market sentiment is shifting from bearish to potentially bullish. If the RSI continues to increase and remains stable, it supports the scenario of strengthening bullish momentum.
A successful breakout of the $0.46 resistance could open the door to further gains, possibly testing higher resistance levels. On the other hand, failure to break through could lead to consolidation or a pullback to lower support levels.
About the Author
Arman Shirinian
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant utility in the future. Currently, it focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.