Ethereum
Here’s how Cardano (ADA) rebounds around $0.3, but for how long?
Arman Shirinian
Bitcoin Could Finally Reach Its Long-Desired Target of $70,000, Especially If These Factors Align
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Bitcoin finally enters reversal mode, with the price of the leading cryptocurrency sliding above the $65,000 zone. However, it is still trading below key support levels such as the 50 EMA and is currently consolidating at the 100 EMA. The most decisive factor for a recovery would be a dynamic that is not present at that precise moment.
It is essential that Bitcoin remains above $65,000 for the near future. Strong support was seen at this level, which could provide the basis for a reversal. If Bitcoin manages to overcome the immediate resistance at 50 EMA, or around $67,000, traders will hope for an eventual rebound.
Additionally, the RSI, centered at 47, shows that Bitcoin is neither overbought nor oversold, pointing to a period of consolidation preceding any notable movement. The macroeconomic environment as a whole is one of the factors influencing Bitcoin’s current performance. Investor sentiment in various markets, including cryptocurrencies, has been influenced by concerns over inflation and possible interest rate increases by central banks.
Bitcoin the long-term outlook remains promising despite these obstacles due to its growing institutional adoption and its ability to serve as a hedge against inflation. Given its continued institutional interest and widespread adoption, Bitcoin’s long-term prospects appear promising.
Solana’s questionable position
While Solana clearly gained respectable strength in May, the asset’s situation has changed and it has been declining steadily over the past 20 days. The SOLETH chart, often used to gauge market volatility, is clearly exhausted and could provide us with some growth in the future.
An important comparison is the Solana vs Ethereum chart, which compares the two most powerful altcoins available. This comparison makes the relative strength and possible volatility of the altcoin market easier to understand for traders and investors.
An overall positive outlook for altcoins is often indicated by the strong performance of Solana compared to Ethereum and vice versa. Because SOLETH captures the growth and performance dynamics of two major cryptocurrencies that are not Bitcoin, it is considered a barometer of market volatility. In the areas of NFTs and decentralized finance (DeFi), Solana and Ethereum are known for their strong ecosystems and remarkable use cases.
Significant movements in these two assets may indicate broader trends in the cryptocurrency market. Ethereum is frequently used as a reference since it is the larger and better known of the two. Conversely, Solana represents newer and rapidly expanding blockchain initiatives. It is possible to infer market sentiment regarding innovation and growth in the cryptocurrency space from the interaction of these two assets on the SOL/ETH chart.
Cardano’s unexpected rebound
Cardano has rebounded somewhat from a local support level around $0.35, with the possibility of battling with the 26 EMA for momentum in the coming days. This rebound is a small but crucial step in breaking a worsening downtrend that has been hitting the cryptocurrency for months.
Sustaining above $0.35 is key for Cardano in the near term. This level has provided a lot of support and could provide the basis for a future recovery. Cardano may indicate the start of a recovery phase if it manages to gather enough momentum to test and possibly surpass the 26 EMA.
An RSI around 37 indicates that ADA is in oversold territory, which may attract buyers looking for cheap entry points. But Cardano hasn’t really performed well in the long run. Even with strong community support and the noble goals of the project, ADA struggled to maintain its value. Cardano has been in a prolonged decline and has not been able to return to its previous highs since hitting its all-time high in early 2022.
Many reasons contribute to this lackluster performance, including the general atmosphere of competition from rival blockchain platforms and slower-than-expected development progress. Although expected by many investors, the Cardano ecosystem has not yet produced revolutionary applications.
Although the deployment of smart contracts on the Cardano network was a big step forward, neither the number of dApps nor user adoption increased significantly. Some investors are frustrated by ADA’s slow development, making them doubt the company’s long-term prospects.
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.