Bitcoin gets closer to ‘51% attack’ on altcoin market

June 13, 2023 Coin Telegraph

Bitcoin's market dominance index has failed to sustain above 50% since April 2021 — so will this time be any different?

Bitcoin's (BTC) percentage share in the crypto market has risen to nearly 50% in the aftermath of the last week's altcoin market rout.

On June 13, the Bitcoin Dominance Index (BTC.D), which tracks BTC's weight against other cryptocurrencies, reached 49.29%, slightly down from its two-year highs of 49.66% seen earlier this week.

*BTC.D daily price chart. Source: TradingView*

BTC not an "unregistered security"

The surge in Bitcoin dominance comes after the United States' Securities and Exchange Commission's (SEC) lawsuit against the crypto exchanges Binance and Coinbase. In its court filings, the commission accused many leading altcoins, including Cardano (ADA) and Solana (SOL), of being "unregistered securities."

Bitcoin's market share typically rises during high market stress, given that traders view it as the least volatile, non-stablecoin crypto asset than most cryptocurrencies. For instance, at the height of banking crisis in March 2023, Bitcoin's dominance versus altcoins had also rebounded to 50%.

*Altcoins' seven-day performance versus the U.S. dollar and Bitcoin. Source: Messari*

There's also other cues suggesting Bitcoin's dominance could grow further to finally break 50%.

For instance, DWF Labs, a crypto market maker, has reportedly sent millions of dollars worth of non-Bitcoin tokens to exchanges, this potentially adding selling pressure for certain altcoins.

Independent market analyst Stack Hodler also suggests that most crypto hedge funds would first and foremost abandon their altcoin exposure.

But not everyone is bullish on BTC dominance. Fellow analyst Moustache, for example, argues the altcoin market may have bottomed once again as Bitcoin will be unable to break the 50% mark.

#Bitcoin

Is the USDT-Dominance about to fall?

If so, we're in for a massive Altseason.

-Head and Shoulders pattern forming (W)?
-Stoch RSI heavily overbought.

In the last 3 years this has led to an Altseason 4 out of 5 times.

+ Sentiment is in the basement for most = Good. pic.twitter.com/odU5jg8srF
— ⓗ (@el_crypto_prof) June 12, 2023

Bitcoin dominance risks pullback in June

Chart technicals suggest that Bitcoin's dominance can indeed drop in the coming weeks as altcoins rebound.

Most notably, BTC.D has failed to close decisively above the 50%-mark since April 2021, often reversing its gains due to an overbought weekly relative strength index (RSI).

*BTC.D weekly performance chart. Source: TradingView*

Bitcoin now faces a similar scenario with a retest of the 50% level for the first time since last summer. Meanwhile, its RSI hangs just two points below its overbought level of 70.

Therefore, if history repeats, Bitcoin's dominance will decline toward 39% by late 2023 or early 2024.

On the other hand, a breakout here will be key for BTC — to reach levels not seen in over two years. For example, analyst Crypto Rover sees a classic bullish continuation setup with 52% being the next major hurdle if such a scenario pans out.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin’s recovery may trigger buying in these 4 altcoins

May 14, 2023 Coin Telegraph

ada

While most coins are reeling under pressure, Bitcoin and select altcoins such as ADA, ATOM, LDO, and ARB are showing promise.

The S&P 500 Index (SPX) closed the week with a nominal loss of 0.29% but Bitcoin (BTC) is on target to finish the week with a deeper cut of more than 5%. The weakness in Bitcoin pulled several altcoins lower, indicating weakening sentiment.

A silver lining is Bitcoin’s solid bounce on May 12. Several analysts anticipate Bitcoin to start a recovery but monitoring resource Material Indicators sounded cautious.

In a recent analysis, they said that the lack of a strong bid from the whales at lower levels could be a concerning sign. They believe that the bullish perspective will invalidate if Bitcoin sustains below the 200-week moving average.

*Crypto market data daily view. Source:* *Coin360*

Over the next few days, the progress on the debt ceiling talks between leaders from Congress and the White House is expected to take center stage. The uncertainty and risks of a potential U.S. default could keep the rally in the equities markets under check but it is difficult to predict how Bitcoin and altcoins will react to all the chaos.

Bitcoin has started a corrective phase and most altcoins have broken below their respective support levels. Only a handful of cryptocurrencies are looking positive on the charts. Let’s analyze the chart of the top five cryptocurrencies that may turn up in the near term.

Bitcoin price analysis

The long tail on Bitcoin’s May 12 candlestick shows that the bulls are aggressively buying the dips to the neckline of the inverse head and shoulders (H&S) pattern.

*BTC/USDT daily chart. Source: TradingView*

Buyers will try to push the price back into the triangle but may face stiff resistance from the bears. The downsloping 20-day exponential moving average ($27,959) and the relative strength index (RSI) below 41 indicate that bears have a slight edge.

If the price turns down from the 20-day EMA, the bears will again attempt to sink the BTC/USDT pair below $25,250. If they can pull it off, the selling may intensify and the pair could crash to $20,000.

On the upside, the bulls will have to clear the hurdle at the resistance line to regain control. The pair may then retest the overhead resistance at $31,000.

*BTC/USDT 4-hour chart. Source: TradingView*

After facing stiff resistance at the 20-EMA, the bulls have cleared the obstacle. This indicates that the bulls are trying to seize control. The pair may first climb to the 50-simple moving average and then to $28,400.

On the contrary, if the price turns down sharply from the current level, it will suggest that the bears are trying to flip the support line of the triangle into resistance. The pair may then plunge to the crucial support at $25,250.

Cardano price analysis

Cardano’s (ADA) solid rebound off the uptrend line on May 11 suggests that lower levels continue to attract strong buying.

*ADA/USDT daily chart. Source: TradingView*

The bulls will try to resume the recovery by propelling the price to the 20-day EMA ($0.38). This level may act as a minor barrier but if bulls overcome it, the ADA/USDT pair could soar toward the neckline of the inverse H&S pattern. This level is likely to witness a tough battle between the bulls and the bears.

Another possibility is that the price turns down from the 20-day EMA and drops to the uptrend line. The repeated retest of a support level at short intervals tends to weaken it. That may open the doors for a potential fall to $0.30.

*ADA/USDT 4-hour chart. Source: TradingView*

The bulls pushed the price above the moving averages, indicating that the bears may be losing their grip. The 20-EMA has started to turn up gradually and the RSI is in the positive zone, indicating that the bulls are on a comeback.

If buyers pierce the overhead resistance at $0.37, the pair could pick up momentum and rally to $0.40 and later to $0.42. Conversely, if the price turns down from $0.37, the pair may slide to the uptrend line.

Cosmos price analysis

Cosmos (ATOM) snapped back from the $10.20 support on May 10, indicating that the bulls are buying the dips to this level.

*ATOM/USDT daily chart. Source: TradingView*

The bears are trying to halt the relief rally at the 50-day SMA ($11.28) but the bulls have not given up much ground. This enhances the prospects of a rally above the 50-day SMA. If that happens, the ATOM/USDT pair could rally to the downtrend line.

This is an important level for the sellers to guard because a break above it will invalidate the bearish descending triangle pattern.

The critical support to watch on the downside is $10.20. If it cracks, the descending triangle will complete and the pair may then plummet to $8.50.

*ATOM/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the relief rally is facing selling at higher levels but the price action is forming a possible inverse H&S pattern that will complete on a break and close above $11.30. The pair may then start an up-move to $12 and subsequently to $12.50.

Alternatively, if the price turns down and breaks below the 50-SMA, it will suggest that the bears are in control. The pair may then slump toward the vital support at $10.20. A bounce off this level could keep the pair inside the boundaries of $11.30 and $10.20 for a while longer.

Lido DAO price analysis

Lido Dao (LDO) rebounded off the $1.60 support and has reached the overhead resistance at the 20-day EMA ($1.95).

*LDO/USDT daily chart. Source: TradingView*

The bears are trying to protect the 20-day EMA but the bulls have not given up. This suggests that the buyers expect the recovery to continue. If bulls drive the price above the 20-day EMA, the LDO/USDT pair could rally to the downtrend line. This level is likely to attract strong selling by the bears.

If buyers arrest the next decline above the 20-day EMA, it will suggest a change in sentiment from selling on rallies to buying on dips. The pair could then start a sustained recovery above the downtrend line.

On the downside, the bears will have to sink and sustain the price below $1.60 to indicate the resumption of the downtrend.

*LDO/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the bulls are trying to propel the price above the overhead resistance at $1.98. If they succeed, the pair will complete a bullish double bottom pattern. This reversal setup has a target objective of $2.39. If this level is also crossed, the pair may reach $2.60.

Contrarily, if the price turns down from the current level or $1.98 and breaks below the moving averages, it will suggest that bears are active at higher levels. That may keep the pair stuck between $1.57 and $1.98 for some time.

Arbitrum price analysis

Arbitrum (ARB) has been finding support near the psychologically important level of $1, indicating that the bulls are aggressively buying the dips.

*ARB/USDT daily chart. Source: TradingView*

On the upside, the bears have been attempting to stall the recovery at $1.20 but a minor positive in favor of the bulls is that they have kept up the buying pressure. That increases the likelihood of a break above $1.20. If that happens, the ARB/USDT pair could rise to $1.40 and later to $1.50.

This positive view will invalidate in the near term if the price turns down sharply from $1.20. That will point to a possible consolidation between $1 and $1.20 for a few days.

*ARB/USDT 4-hour chart. Source: TradingView*

The 20-EMA on the 4-hour chart has started to turn up and the RSI is in the positive territory indicating that the selling pressure is reducing. Buyers will try to strengthen their position by pushing the pair above $1.20. If they do that, the pair will complete a double bottom pattern, which has a target objective of $1.35.

The first sign of strength for the bears will be a break and close below the 20-EMA. That could pull the pair to $1.05. A slide below $1 will signal the resumption of the downtrend.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Sell the news? Cardano price risks 20% drop despite Vasil hard fork euphoria

July 21, 2022 Coin Telegraph

ADA price

ADA runs out of buyers despite the long-awaited Cardano hard fork going live potentially at the end of july.

Cardano (ADA) has dipped this July 21 as the market favors mounting selling pressure around its most reliable resistance levels in 2022 over a major upcoming hard fork.

ADA price could plunge 20% by early August

ADA's price fell 5% intraday to $0.476. The downside move came as a part of a broader retreat that started a day after it briefly climbed above its 50-day exponential moving average (50-day EMA; the red wave in the chart below) near $0.50.

The 50-day EMA has been serving as ADA's curvy resistance level since October 2021.

*ADA/USD daily price chart. Source: TradingView*

Additionally, the upper trendline resistance of a broader descending channel pattern strengthened the selling sentiment around the ADA's 50-day EMA wave. Earlier in June, the same resistance confluence had triggered a 35% price drop toward the channel's lower trendline.

Therefore, ADA's renewed correction move risks leading the price toward $0.384 by July or early August, down about 20% from today's price.

2018 fractal suggests $0.20 per ADA

However, a separate analysis sees ADA falling to deeper levels than $0.384.

Penned by TradingShot, the bearish ADA forecast draws comparisons between the ongoing correction and the one witnessed during the 2018 market crash, as shown below.

*ADA/USD daily price chart 2022 versus 2018. Source: TradingView*

In detail, the 2018 chart above shows ADA undergoing multiple bearish rejections near its 50-day EMA (the orange wave) while trending downward in a descending channel pattern. The token's downtrend became exhausted after correcting by nearly 93% from its local high.

"Based on 1D RSI terms, we also seem to be on the third (3) and final leg below the collapse," TradingShot wrote, adding:

"So if ADA holders want to avoid this, they need to see the price break above the 1D MA50 and sustain trading above it for a week at least. Otherwise, completing a -93% drop from the top is possible at around 0.200."

When hard fork?

The latest ADA price correction appears in the days leading up to Cardano's hard fork.

Dubbed "Vasil," the hard fork was supposed to go live in June but was delayed until the last week of July over several outstanding bugs. Nonetheless, as of July 21, Input Output Hong Kong (IOHK), the firm behind the Cardano blockchain development, has not announced the exact launch date.

Vasil is expected to bring significant performance and capability upgrades to the Cardano blockchain, including faster block creation and higher transaction speeds. From a fundamental perspective, the upgrade could boost ADA adoption due to improved network efficiency.

But Cardano has a history of logging sharp price corrections after most network upgrades, suggesting a prevailing "sell the news" sentiment in the market.

*ADA/USD three-day price chart. Source: TradingView*

For instance, the blockchain's Alonzo upgrade in September 2021 partly prompted ADA to rise by over 200% to its record high of $3.16 before launch. But after the upgrade, the Cardano token fell by more than 85%.

ADA has risen by only 25% after bottoming out locally at $0.384 on May 10, suggesting that Vasil's impact on the market has been limited.

But not everyone is convinced. For example, analyst Lark Davis believes the token will "rip" after the hard fork, given it manages to hold 50-day EMA as support.

#cardano $ada has broken past its 50 day EMA, now we just need Charles to announce the date of the Vasil hard fork and this puppy will rip! pic.twitter.com/yQTiCiCE6H
— Lark Davis (@TheCryptoLark) July 20, 2022

Until then, ADA will likely stay under the "sell the news" pressure, pressured further by ongoing macro risks and their negative impact on crypto markets.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Cardano price fake-out? ADA’s 45% rebound in two days could trap bulls

June 1, 2022 Coin Telegraph

ada

ADA price has seen sharp recoveries during bear markets in the past with many turning out to be bull traps.

Cardano (ADA) price climbed from $0.48 on May 30 to as high as $0.68 on May 31—a 45% rally in less than 48 hours. But ADA/USD failed to extend its rally further upward and dropped by almost 13.75% from its weekly high.

ADA price: Bear market vibes

Cardano's price retreated sharply on June 1, giving up a portion of the gains secured in the previous two days. The question now arises whether the ADA/USD pair can extend its recovery trend, especially as it trades almost 80% below its September 2021 peak of $3.16.

Interestingly, the downside retracement began after ADA tested its 50-day exponential moving average (50-day EMA; the red wave in the chart below) as resistance. Also, the pair moved lower in tandem with a broader correction sentiment across riskier assets, including Bitcoin (BTC) and the S&P 500 (SPX).

Now, the Cardano token risks a further price correction, according to the Digital Trend, a financial analysis contributor at SeekingAlpha, noting that ADA has seen sharp price rebounds in the past that turned into bull traps, adding:

"In March, we saw ADA go from south of $0.80 to over $1.24 in a couple of weeks. This, to me, looks like another fake-out."

Several fundamental factors also support a bearish outlook. On June 1, the Federal Reserve will begin unwinding its $9 trillion asset portfolio, likely creating more headwinds for risk-on assets, Cardano included.

1/16

Today it begins.

Quantitative Tightening.

So what does it mean? Is it a straight down market? Do we know its all good if nothing bad happens the first day?

How do you navigate this?
— Adam Cochran (adamscochran.eth) (@adamscochran) June 1, 2022

"I don't think we know the impacts of QT [quantitative tightening] just yet, especially since we haven't done this slimming down of the balance sheet much in history," Dan Eye, the chief investment officer of Fort Pitt Capital Group, told Market Watch, adding that removing liquidity from the market would "affect multiples in valuations to some degree."

Cardano price paints bull pennant

From a technical perspective, Cardano could continue its recovery trend in June due to a bullish continuation pattern.

ADA has been consolidating inside what appears to be a "bull pennant," confirmed by the price fluctuating inside a triangle structure following a massive move upside, called "flagpole."

As a rule, a bull pennant resolves after the price breaks above its upper trendline and rises by as much as the flagpole's height.

*ADA/USD hourly price chart featuring 'bull pennant' setup. Source: TradingView*

In other words, a $0.77 bullish target in June, up more than 25% from June 1's price.

ADA/BTC sees a similar upside setup

ADA has been painting a similar bull pennant setup against Bitcoin, raising the chances of an uptrend for the ADA/BTC pair in June.

*ADA/BTC hourly price chart featuring 'bull pennant' setup. Source: TradingView.com*

As a result, ADA/BTC's decisive breakout above the pennant's upper trendline could have it rise toward 0.00002355, up 23% from June 1's price.

Cardano’s ADA price eyes 30% rally with a potential ‘triple bottom’ setup

December 14, 2021 Coin Telegraph

ada

The only glitch in the bullish setup, for now, remains the Federal Reserve’s taper acceleration plans.

Cardano (ADA) may rally by nearly 30% in the coming days as it forms a classic bullish reversal pattern.

Sharp ADA rebound underway

Dubbed “triple bottom,” the pattern typically occurs at the end of a downtrend and consists of three consecutive lows printed roughly atop the same level. This means triple bottoms indicate sellers’ inability to break below a specific support level on three back-to-back attempts, which ultimately paves the way for buyers to take over.

In a perfect scenario, the return of buyers to the market allows the instrument to retrace sharply toward a higher level, called the “neckline,” that connects the highs of the previous two rebounds. The move follows up with another breakout, this time taking the price higher by as much as the distance between the pattern’s bottom and neckline.

So far, ADA’s price has been able to paint the triple bottom halfway, now rebounding after forming the third low, as shown in the chart below.

*ADA/USD 4-hour price chart featuring triple-bottom setup. Source: TradingView*

The point at which ADA’s price reversed was accompanied by a rise in trading volume, suggesting that the rebound had enough backing from buyers. Therefore, Cardano’s token looks poised to at least pursue a run-up toward $1.40.

Moreover, if the price further breaks above the neckline level decisively, it will likely continue to rally until it hits $1.63 — as per the triple bottom scenario.

Accumulation area

The potential triple bottom scenario emerged after ADA’s price plunged by more than 60% from its record high of $3.16 achieved on Sept. 2 earlier this year. It also surfaced as the Cardano token became one of the worst performers quarter-to-date, dropping nearly 45.50% compared to its top rival Ether’s (ETH) 15% gains.

ADA’s multi-month selloff pushed its daily relative strength index (RSI), a momentum indicator, into oversold territory. In addition, ADA’s price drop also led it to what appears like a dependable “accumulation area,” as shown in the chart below.

*ADA/USD daily price chart featuring accumulation area and oversold RSI. Source: TradingView*

Both RSI and the accumulation area also point to a buying scenario in the ADA market, thus supporting the triple bottom scenario on the four-hour chart.

Risks remain for ADA’s price

It is important to notice that ADA dropped by more than 5.50% in the past 24 hours, much in sync with other top crypto assets in the space, with Bitcoin (BTC) sinking by over 3% and Ether by almost 5% in the same period.

At the core of the crypto market’s uniformed decline was the United States Federal Reserve’s two-day policy meeting starting Tuesday. In the meetup, the U.S. central bank will likely decide to accelerate the tapering of its $120-billion-a-month asset-purchasing program, one of the key catalysts behind the crypto and stock market rally since March 2020.

Other parts of the Fed meeting will see the officials discussing the prospects of rate increases next year from its current near-zero levels. Cheaper lending had also played an important role in pushing the Bitcoin and altcoin market prices higher across 2020 and 2021, including ADA.

As Fed officials initiate their policy meeting, ADA is testing $1.18 as its weekly support for a potential price rebound. The $1.18 level is the 0.618 Fib line of what appears to be an accurate Fibonacci retracement graph in predicting ADA’s support and resistance levels.

*ADA/USD weekly price chart. Source: TradingView*

Should ADA fail to rebound and close below $1.18, its next Fib support may come at the 0.786 Fib line near $0.674, around 42% below. Nonetheless, ADA/USD may also test $1 as psychological support for an early upside retracement, similar to its multiple rebounds between February and July 2021.

Solana surpasses Cardano, Tether to become fourth-biggest crypto worth $76 billion

November 7, 2021 Coin Telegraph

Solana surpasses Cardano, Tether to become fourth-biggest crypto worth billion

ADA price

SOL price reached another record high on Nov. 7, bringing its YTD gains up by roughly 17,500%.

Solana (SOL) surpassed Cardano (ADA) and leading stablecoin Tether (USDT) to become the fourth-largest cryptocurrency by market capitalization.

At press time, the net worth of total SOL tokens in circulation was a little over $76 billion, falling only behind Binance Coin's (BNB) $109 billion, Ether's (ETH) $540 billion, and Bitcoin's (BTC) $1.17 trillion.

*Top ten cryptocurrencies by market cap as of 1330 UTC, Nov. 7. Source: Messari*

Meanwhile, Cardano and Tether's market cap came out to be $66.39 billion and $74.42 billion, respectively.

$100M fund launch boosts SOL's bullish outlook

Solana's market capitalization surged as its native token, SOL, rose to yet another record high. On Nov. 7, the SOL price crossed above $262 for the first time in history, primarily owing to a market-wide price rally that saw other top cryptocurrencies ink similar gains.

Meanwhile, SOL received additional bullish cues from Solana's foray into Web3 gaming development via its venture capital arm. Dubbed Solana Ventures, the firm announced Friday that it, alongside FTX and Lightspeed Venture Partners, would invest $100 million into the game studios and technology sector.

In doing so, Solana Ventures aims to attract desktop and mobile video game developers to build their projects atop its public blockchain, thereby raising the prospect of higher SOL adoption. A similar adoption boom in 2021 helped send the SOL price up by almost 17,500% YTD — from $1.51 to $262.45.

*Solana ecosystem in a nutshell. Source: Solanians Telegram Channel*

The uptrend surfaced as speculators started treating Solana as one of the most serious challengers to Ethereum, the leading smart contracts platform grappling with higher gas fees and network congestion issues.

For instance, Solana claims that it could process 50,000-60,000 transactions per second (tps) for an average transaction fee of $0.00025. In comparison, Ethereum transacts 15-30 tps, with its median transaction cost ranging between $4 and $21.

*Smart contract platforms comparison. Source: Solwealth*

Paul Veradittakit, a partner at Pantera Capital, told Bloomberg, called Solana "the top competition" to Ethereum, Cardano, and other smart contract platforms, regarding "developer adoption and momentum."

Nonetheless, Solana also exhibited signs of resource exhaustion, i.e., a lack of prioritization among SOL transactions and a lower number of validators that led to an eighteen-hour long network outage in September. If not fixed, it could raise the risks of reversed or altered transactions across the Solana network.

Correction risks for SOL price

Despite its latest rally to an all-time high, SOL risks undergoing a correction due to at least two bearish indicators.

First, the SOL price has been forming a Rising Wedge, a technical pattern that typically results in lower prices. And second, the cryptocurrency has also been confirming a bearish divergence between its rising price and declining momentum (as confirmed by lower highs on its daily relative strength index).

*SOL/USD daily price chart featuring rising wedge and price-momentum divergence. Source: TradingView*

A break below the Wedge's lower trendline, if accompanied by an increase in volume, would risk sending the SOL price lower by as much as the maximum height. That roughly puts SOL's downside target to levels between $205 and $91.52, depending on the level at which the bearish breakout begins.

Solana battles Cardano for the top-five spot as SOL market cap crosses $70B-mark

November 3, 2021 Coin Telegraph

Solana battles Cardano for the top-five spot as SOL market cap crosses B-mark

ADA price

Solana price rallied to a new record high while SOL entered the top-five cryptocurrencies by market cap for the first time.

Solana's (SOL) autumn rally continued on Nov. 3 with its price and market cap hitting a new record high.

SOL surged by 7% in the past 24 hours to $236, pushing its market capitalization to over $70 billion for the first time in history. As the token wobbled near its record high levels, it flipped Cardano (ADA) briefly to become the world's fifth-most valuable crypto asset.

Currently, SOL's market cap was around $69.37 billion, just $500 shy of ADA's $69.87 billion market valuation.

*Top ten cryptocurrencies by market cap (as of 1230 UTC, Nov. 3). Source: Messari*

Solana rallies on NFT craze

Solana battling for the top-five cryptocurrency spot came on the heels of SOL's renewed upside strength heading into the fourth and the final quarter of 2021. For instance, the Solana blockchain's native token grew by over 65% since Oct. 1. On the other hand, ADA's returns in the same period came out to be just 2.13%.

ADA underperformed primarily on "sell-the-news" sentiment. As Cointelegraph covered, the Cardano token started plunging right after it rolled out its much-awaited smart contracts functionality via a so-called Alonzo upgrade on Sept. 13.

*ADA/USDT three-day price chart. Source: TradingView*

In the days leading up to the hard fork, ADA's best year-to-date returns were around 1,630%. At press time, they came out to be around 1,050%. In comparison, SOL's YTD returns at the time of this writing were over 12,700%.

Independent market analyst Pentoshi credited the rising number of nonfungible token (NFT) projects on Solana as one of the main reasons behind its price boom, recalling a tweet from Aug. 16 that accurately predicted a bull run for the token.

$Sol has passed $Ada and taken the #3 spot

Balance has been restored in the world

The Endless #solana summer https://t.co/DD18hgroEJ
— Pentoshi Won’t Dm You. hates Dm’s. DM's are scams (@Pentosh1) November 2, 2021

Messari's researcher Mayson Nystrom also noted a "formidable growth" of NFTs in the Solana ecosystem, noting that the blockchain processed $500 million worth of total NFT secondary sales volumes since April 2021. Excerpts:

"Whether or not Solana can manifest this initial energy into long-term NFT growth is yet to be determined, but current signs present valid reasons to be optimistic about Solana's burgeoning NFT ecosystem."

*Solana versus Ethereum NFT statistics. Messari*

SOL to hit $275 next?

SOL's latest run-up to its record high also came as a breakout out of its Bullish Pennant structure, as shown in the chart below.

*SOL/USDT daily price chart featuring Bullish Pennant setup. Source: TradingView*

Bullish Pennants appear as the price consolidates inside a Triangle-like structure after logging a strong move higher, dubbed as Flagpole. Traders typically wait for the price to break above the Triangle's upper trendline before placing their profit target at a length equal to the Flagpole's height.

Solana's Flagpole height is rough, $175. As a result, its breakout move from the Triangle's resistance trendline (~$158) prompts SOL to grow by another $175, thereby setting its profit target above $275.

Cardano price paints ‘death cross’ with ADA at two-month lows vs. Bitcoin

October 19, 2021 Coin Telegraph

ada

ADA price has been struggling against the U.S. dollar in October.

Cardano (ADA) has formed a deadly "death cross" on its daily chart against Bitcoin (BTC) — a market signal that's generally seen as a warning of more downside in the near term.

The ominously-titled indicator kicks in when an asset's short-term moving average closes below its long-term moving average. In doing so, it calls for technically-minded traders to increase their bearish positions in the market.

ADA/BTC in trouble

On Tuesday, ADA's 50-day exponential moving average (50-day EMA; the velvet wave) dropped below its 100-day exponential moving average (100-day EMA; the blue wave). That marked the sixth 50–100 EMA bearish crossover ever on the ADA/BTC daily chart, raising fears of further declines ahead.

*ADA/BTC daily price chart featuring Oct 2021 death cross. Source: TradingView*

That is partly due to ADA's earlier price reactions to death crosses. For instance, in September 2020, the Cardano token's price dropped almost 38.50% against Bitcoin after painting a 50–100 EMA bearish crossover.

Similarly, a death cross pattern on May 12, 2019, subsequently saw a 62.50% price decline.

*ADA/BTC daily price chart featuring May 2019 death cross. Source: TradingView*

Nonetheless, the likelihood of an immediate selloff remains relatively low. That is mainly because ADA's daily relative strength index (RSI), which alerted the token's status against Bitcoin as oversold, is below 30. Traders typically treat an excessively sold RSI as their cue to enter the market.

For instance, in May 2019, the death cross's formation coincided with the RSI treading below 30. Later, the price bounced by over 30% to retest the 50-day and 100-day EMA waves as resistance, underscoring traders' intention to buy oversold cryptos.

Applying the same fractal to the current price action, one can expect the ADA/BTC rates to bounce back, especially as it drops to its two-month-low at 0.00003372 BTC runs down to retest a five-month-old support area defined by 0.00003192–0.00003075 BTC (the red bar in the first chart above).

That inverse Cup and Handle

A weakening ADA/BTC rate merely reflects Cardano's clumsy performance against the U.S. dollar in recent sessions versus Bitcoin, which has surged massively against the greenback in the same timeframe.

For instance, Bitcoin's month-to-date gains against the dollar sit around 43%. In comparison, Cardano's price has slid by over 6% during the same period.

But further weakness could be expected, according to an inverse Cup and Handle pattern taking shape on its dollar-quoted charts.

*ADA/USDT daily price chart featuring inverse cup and handle pattern. Source: TradingView*

In detail, inverse Cup and Handle patterns appear when the price forms a large crescent shape followed by a modest upward retracement.

Analysts consider them as bearish reversal indicators, for they tend to send the price down by as much as the maximum distance between the Cup's top and its right-hand's bottom level if the price breaks below the pattern's support.

ADA's recent price action fits the inverse Cup and Handle description, with the price now looking to break below the structure's resistance line near $1.97. As a result, the downside target price is the $0.772–$0.820 area if Cardano confirms a bearish breakout.

Over 2,300 Cardano Smart Contracts Are Waiting in Timelock, ADA Price Slides 20% Over 2 Weeks

September 17, 2021 Bitcoin.com

Bitcoin tests key level for $40K BTC price dip as altcoins bleed

September 13, 2021 Coin Telegraph

Bitcoin

It’s not looking good for Bitcoin bulls, at least for today, as moving averages slip from view and $40,000 begins to loom large.

Bitcoin (BTC) fell further at the start of the new week as a lack of bullish momentum sparked new lows near $44,000.

*BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView*

Bitcoin threatens loss of $44,000 “demand zone”

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD testing levels that analysts demand should stay as support.

After a weekly close below both the key 50-day and 200-day moving averages, the pair looked increasingly less likely to reclaim them on shorter timeframes.

For Cointelegraph contributor Michaël van de Poppe, the bullish crossover of the two averages, known as a “golden cross,” was still on the cards. There was, however, “no guarantee” that bullish behavior would result from the event taking place.

“I think we’re going to have a top of this cycle… next year, in April–May,” he forecast, giving a new, further-reaching timetable for BTC/USD to see its cycle top.

In the meantime, $44,000 and $47,000 form the support and resistance levels to watch for a continuation up and down, he added.

For fellow trader and analyst Rekt Capital, $44,000 was equally important, forming the lower boundary of a “demand area” among buyers.

“The recent BTC Weekly Close wasn’t technically bad as it occurred above the orange demand area. However, BTC is now dipping deeper into the demand area,” he commented on an accompanying chart Monday.

“That said, this demand area still hasn’t been lost. As long as the demand area holds, BTC won’t see $40K.”

*BTC/USD 1-week annotated candle chart (Coinbase). Source: Rekt Capital/Twitter*

Cardano 10% losses lead fresh altcoin rout

Altcoins fared worse than Bitcoin overnight, with the top 10 led by 11% 24-hour losses on Cardano (ADA), which fell to $2.41.

The largest altcoin, Ether (ETH), shed 6%, while the sole saving grace for investors was Polkadot’s DOT, which at the time of writing was clinging to 4% upside.

*ADA/USD 1-day candle chart (Binance). Source: TradingView*

“Many Altcoins have performed favourable Weekly Closes, indicating that retests should follow,” Rekt Capital added about the latest moves.

“At this time, the retests are failing, coins threatening to lose key supports. But it’s early in the week. Could easily turn out to be normal retest volatility.”

Trader Scott Melker, meanwhile, soft-peddled concerns about Bitcoin’s failing market dominance, arguing that new altcoins were artificially diluting its stance.

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