Altcoins
Cardano Price Prediction: ADA Forms Rising Wedge on 4H
Cardano price has gone nowhere in the past two weeks as the recent bullish momentum wanes. The ADA coin was trading at $0.3875 on Tuesday, in the same range where it has been in the past few months. This price is a few points below the year-to-date high of $0.4057 and 62% above the lowest level in December last year.
The main catalyst for ADA price is news that Input-Output had launched the public testnet for its new sidechains. These sidechains will be interoperable with other blockchains. It will also be Ethereum Virtual Machine (EVM) compatible.
ADA price daily chart analysis
On the daily chart, we see that Cardano price has been in a slow comeback after crashing to a low of $0.2357 in December. Its highest point this week was along the lowest level on July 13. This means that the coin has found substantial resistance.
At the same time, the coin has formed what looks like a cup and handle pattern. This consolidation is part of the handle section. It has also jumped slightly above the 50-day moving average while the Average True Range (ATR) has moved sideways,
A look at on-chain data by Token Terminal shows that volume of the coin has been in a downward trend after peaking at $974.4 million on January 10 of this year. It currently stands at about $350 million.
Therefore, there is a likelihood that Cardano price will remain in this range in the next few days. It will then have a bullish breakout as buyers target the key resistance point at $0.50. A drop below the key support at $0.40 will invalidate the bullish view.
Cardano price forecast
Turning to the 4H chart, we see that ADA price has been in an upward trend. It has formed a rising wedge pattern, which is usually a bearish sign. The coin has moved below the lower side of the riing wedge pattern and crossed the 50-period moving average.
At the same time, the Relative Strength Index (RSI) has formed a symmetrical triangle pattern. Therefore, there is a likelihood that the coin will have a bearish breakout. If this happens, the next key level to watch will be at $0.35.
Solana price joined in on the recent rally in the global cryptocurrency market, jumping nearly 17% in the past week. Solana has made substantial gains this year, climbing 102% in its year-to-date price. SOL ranks as the 11th largest cryptocurrency after Binance USD and ahead of Polkadot. Despite the altcoin’s recent rally, the total volume of the coin traded has continued to dwindle.
Fundamentals
Solana price was trading slightly higher on Friday as Bitcoin and other altcoins extended their rally despite the bank contagion fears weighing on the markets. Bitcoin and Ethereum have been leading the recent rally in the market, jumping more than 30% and 20% in the past week, respectively.
Investors have welcomed the resilient crypto prices amid the recent crisis in the banking sector this week. The week started with the collapse of Signature Bank and Silicon Valley Bank on Sunday until the focus shifted to Credit Suisse and First Republic Bank. Traders have been digesting the fate of Credit Suisse even after the bank said that it would borrow up to 50 billion Swiss Francs from the Swiss National Bank.
Several analysts have linked the recent rally in the crypto market to lingering bank worries. Even so, crypto prices are heavily influenced by inflation and the Federal Reserve interest rate hikes. According to analysts, the recent decline in banking stocks points to the vulnerability of traditional institutions, raising liquidity concerns…
Ethereum price staged a strong recovery over the weekend, wiping out its previous losses after jumping by more than 11%. ETH has moved past the crucial level of $1,500 and is currently trading at 1,588.98. The altcoin’s total market cap has jumped by more than 8% over the past 24 hours, while the total volume of the coin traded increased by nearly 37%.
Fundamentals
Ethereum price staged a strong comeback during the weekend, breaking its 5-day consecutive downtrend. Ethereum’s recovery is in line with the overall recovery in the crypto market. The global crypto market cap has jumped past the $1 trillion level and currently sits at $1.02 trillion. The total crypto market volume has increased by more than 31% over the last day.
Last week was a tough week for the crypto community. The Silvergate crisis, as well as fears about potential further interest rate hikes, had been weighing on the crypto market in the past week. Silvergate recently announced its plans to wind down its operations and liquidate its bank, staging the biggest hit on the crypto market after FTX’s collapse and Terra’s LUNA crash.
Notably, Fed chair Jerome Powell warned that the US central bank is likely to impose further interest rate hikes to higher levels than previously anticipated. The raising of interest rates over the past year has heavily weighed on risk assets such as cryptocurrencies and stocks.
Binance, the…
Cardano price has been under intense pressure for the past few days as Silvergate poses for a potential bankruptcy. ADA has slipped by more than 7% in the past week but remains 32% higher in the year to date. At the time of writing, ADA was 2.54% lower at $0.3221, while its total market cap inched nearly 1% lower. Cardano ranks as the 7th largest cryptocurrency by market cap after XRP and above Polygon.
Fundamental Analysis
Cardano price has recorded a sharp decline for the past few days as Silvergate’s crisis continues to weigh on cryptocurrencies. Silvergate Capital is a Californian bank that pioneered money transactions between cryptocurrencies and hard cash. The Silvergate crisis looks to be the next big failure after the collapse of FTX and Terra’s LUNA meltdown.
Data by Coinmarketcap show that the global crypto market cap has continued to move lower to $1.01 trillion, pointing to a bearish outlook in the crypto market. Bitcoin’s dominance has also inched lower as the digital asset remains at the $22,000 level.
Fears of higher interest rates by the US Federal Reserve have been gnawing at the markets, following Powell’s hawkish tone. Fed chair Jerome Powell announced on Tuesday that the Federal Reserve is prepared to return to bigger interest rate hikes in a bid to fight inflation.
The US central bank has been struggling to cool the economy despite a year-long campaign of…
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