Solana
Will it come into action? Cardano (ADA) brand new support level
Cover image via www.freepik.com
Disclaimer: The opinions expressed by our editors are their own and do not represent those of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not responsible for any financial losses incurred while trading cryptocurrencies. Do your own research by contacting financial experts before making any investment decisions. We believe all content to be accurate as of the date of publication, but some offers mentioned may no longer be available.
Content
Solana unexpectedly lost about 10% of its value. The asset that seemed well positioned for the rally following the preliminary approval of the Ethereum ETF currently appears weaker than the rest of the market, and it is unclear whether it will recover properly.
Looking at the chart, Solana saw a sharp decline from around $176 to $164. This significant decline caused SOL to test its support level at $160, which previously served as a strong support zone. If this level fails to hold, the next major support lies at $150, corresponding to the 200-day moving average (orange line).
On the side of the resistance, Solana faces immediate resistance at $176, a level it struggled to hold before the recent decline. Above that, the next key resistance is around $190, where the 50-day moving average (blue line) currently sits. Crossing these levels would be necessary for any substantial recovery.
Several factors could contribute to by Solana decline. First, market sentiment following the approval of the Ethereum ETF has been mixed, with some assets benefiting while others like Solana are suffering. Additionally, technical factors such as failure to hold key resistance levels could have triggered stop-loss orders, thereby accelerating the sell-off.
For traders and investors, the $160 support level is critical. If Solana can maintain this level, it could consolidate and attempt another upward move. However, if it breaks below $160, the next important level to watch would be $150. This could indicate further downside potential and investors may need to prepare for greater volatility.
Ethereum remains calm
The expected increase in prices that many attribute to Ethereum The ETF effect turned out to be a fiasco. A number of factors could explain this poor price performance, although for now the most important question remains: could there be price growth in the future, rather than calling it a failure of recovery ?
Ethereum, until now, had not been able to actually break through key resistance levels even after the ETF approval. The key reasons behind this are the type of approval – it was not the full-fledged S-1 type – and therefore the doors to further regulatory issues are still open.
Related
Additionally, the Trade and Markets Division provided this consent under delegated authority, which will be challenged over the next 10 days. All this constitutes additional uncertainty which adds to the overall situation of the markets.
But it’s not all bad in the long run. The simple fact that any acceptance of an Ethereum ETF, even partial, sets a precedent in this space and triggers potential new and larger instances of crypto adoption.
Cardano’s strange position
Cardano is not the most noticed asset in the market, does not bring much volatility and, therefore, has not formed very visible movements in previous weeks. However, we can see some potential here as ADA approaches major support, which can then serve as the basis for a reversal.
Related
At this point the graph shows Cardano establishing a new support level around $0.45. This level has been tested repeatedly and has resisted downward pressure, perhaps indicating real interest in this price. The spike in volume from this new move definitely strengthens the case for an important level for the price. If ADA can hold this level, it could serve as an interesting base on which to initiate an upward move.
On a daily chart, ADA has its immediate resistance located at $0.50. This is a price level at which the ticker has seen rejections in price action over the past couple of days. One key thing to note is that once breached, the current fanatical rally could reach a target at $0.55, exactly where the 200-day moving average sits.