- Cardano got fundamental support
- The fall of Bitcoin continue
While most cryptocurrencies in the market are looking for a rebound base below them, Cardano hit the fundamental level of the 200-week moving average against Bitcoin, which forms the green price candle after the 13 drop. % of yesterday. Unfortunately, the price performance against the USD leaves a lot to be desired.
Cardano got fundamental support
Despite the stalemate on the USD pair, Cardano is showing some rebound potential against Bitcoin, which is clearly not showing any form of strength in the market over the past few weeks.
As the daily chart of the asset and on-chain data suggests, Cardano has a higher chance of a near-term bounce than most cryptocurrencies in the market. In terms of technical analysis, ADA got the local support from the 200-week average, which previously served as a rebound base.
ADA entered the 50 and 200 week moving range on June 13 and has been moving there for the past nine weeks, which can be seen as a consolidation. As mentioned on previous U.Today, Cardano is less likely to face another price drop compared to similar cryptocurrencies.
The MVRV ratio for ADA is at a lower level compared to Ethereum, Solana and others. The reason for this is the issue of asset price performance caused by technical issues on the network testnet which challenged the stability of the mainnet after the final implementation of Vasil.
At the moment, we can see a gradual decrease in trading volume, which can be seen as both a positive and a negative factor; the drop in volume is useful when whales or any kind of investors are trying to pull the assets out of the downtrend, but at the same time it leads to less liquidity.
The fall of Bitcoin continue
Since the August 18 blackout, Bitcoin has shown us no signs of an upcoming reversal as technical, on-chain, and fundamental factors play out against the premier cryptocurrency. We previously mentioned on U.Today that the profitability of the long-term holder supply is at an extremely low level.
With the profitability of digital gold not recovering, we will contribute to an upcoming reallocation of funds and prolonged consolidation. Until the asset’s profitability recovers, there is not much chance of a reversal as investors are less likely to invest further in the already problematic asset.
From a macro perspective, the picture hasn’t changed as rate hike cycles continue and the US dollar is breaking new highs almost daily, approaching the 2002 high discussed.
The only event that could change the balance in the market is the Merge update on Ethereum, which should bring more drawdown to Ethereum. Given Ether’s dominance in terms of derivatives volume, the performance of the second-largest cryptocurrency in the market will most likely affect Bitcoin and other digital assets.
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Crypto Market Review, August 25 – Tech Tribune France
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