U.Today – is probably in the worst situation we've seen this year. As it stands, ADA is moving below all the key moving averages on the mid-term charts. Unfortunately, the key reasons behind such poor performance are multi-dimensional and go back to Cardano's fundamentals.
The chart looks bleak for ADA. The cryptocurrency has been seen trading below its 50, 100, and 200 day EMAs. This implies a bearish trend. All of this underperformance stands in stark contrast to the optimism surrounding Cardano at the beginning of the year. The inability to stay above these increasingly important levels likely indicates that there is little buying interest and therefore little confidence in ADA, where utmost caution is necessary.
One of the main reasons behind this decline is high-level competition within the blockchain ecosystem. While Cardano has made strides in creating an ecosystem around the platform, it is notably catching up with more popular ones such as and .
the future
Bitcoin has surpassed the $70,000 threshold, but has failed to gain a foothold above it. Unfortunately, the market is reacting in a strange way: the Ethereum ETF craze brings mixed trends to the market, from extra bullish sentiment to suppressed market performance in a matter of days, if not hours.
BTC price action hit a strong barrier after a bullish break through the psychological $70,000 level, pulling back slightly towards consolidation around $67,500. From the chart below, it is evident that Bitcoin is fiercely trying to stay well above key moving averages, including the 50-day and 100-day EMAs.
This was further confirmed by the large rises and falls in volumes recorded over the past few days. Wild volume indicates a complete lack of committed direction or confidence among traders.
Obviously, don't forget about the Ethereum ETF craze. On the one hand, the approval of Ethereum ETFs generates new optimism and an overall bullish tone, which has been reflected in skyrocketing prices and activity.
In the future, these acceptances may help Bitcoin stay at levels from which it can rise. Next in line is the 50-day exponential moving average at the $66,683 dynamic support level, with the 100-day EMA closing at $64,890. If BTC predominantly holds above these supports, it will give the bulls a chance to test the upside of $70,000.
On the contrary, the break of these support levels will show the continuation of bearish activity, and the next critical support level below is $62,521. This will likely increase market uncertainty and could lead to substantial volatility within the range.
Solana bears are not that strong.
Despite Solana's current status, the trading volume suggests that SOL bears are slowly losing power and maintaining the current pressure on the asset could prove impossible in the foreseeable future, so a recovery could become a realistic scenario.
Solana has flattered this week after making contact with the critical $165 level. It comes after a decent cut for the overall market, where most cryptocurrencies have lost value. In any case, trading volumes show that the bearish momentum could be starting to stall.
The chart shows that SOL remains above critical support levels, mainly the 50 and 100 day EMAs. This remains a positive indication that the asset has remained above these moving averages. However, they are highly indicative that the asset is still in a bullish stage despite the downward pressure at the moment.
Buying interest in SOL remains stable despite the drop in volume from those levels earlier in the year. The gradual decline in bearish volume is an early positive signal to buyers that the recovery is under control.
With overextended volume at the top, look for a move up to signal a new bullish extension phase. Note: If Solana falls and cannot hold above the $150 support level, it may double its high and fall, although that seems less likely now, given current indications.
This article was originally published on U.Today.
