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The Cardano versus Ethereum fight will only heat up in the coming months. ADA has recently defied tremendous bearish pressure and had a big rally. It was one of the only alts to maintain its price despite the volatility in the crypto market.
On 2 June, ADA was trading at $1.77 after failing to break through resistance at $1.83. The Visible Range indicator indicated that there was little trading activity at this level, but the price has held between $1.63 and $1.83 for the second day in a row. The market’s bullishness may have sustained the present price, while the point of control stayed significantly lower at $1.23.
As ADA traded between $1.63 and $1.83, the 50 Moving Average moved closer to the candlesticks. This might provide extra assistance if the price rises. However, when the market lost momentum, the possibilities of a price swing were slim. The restricted price movement has squeezed the momentum out of the market as Awesome Oscillator remained at zero. This lack of momentum could also confirm further consolidation in ADA market.
Decentralized Finance [DeFi] initiatives have been praised for their ability to withstand the changing trends in the crypto market. Uniswap’s UNI was one among the defi tokens that quickly recovered from the loss, trading at $27.94. The rising price matched with the signal line, indicating an increase in bullishness in the UNI market.
Even though the asset was still 38% behind its all-time high of $44.92, the market was seeing additional money enter. Chaikin Money Flow, which was negative when the price fell, had now turned into positive territory and was rising fast. Traders were ready to purchase the digital asset at its present price in order to stabilise the market. This was also highlighted by the Relative Strength Index that took off from the oversold zone and remained close to equilibrium.
ADA may continue to trade in its current range unless there was a shift in volatility.
Unlike most other altcoins that are consolidating, the Chainlink market indicated a negative grip on the price. LINK was trading at $30.51 after rejecting resistance at $33. The 50 Moving average lingering above its price indicated that the value was under pressure.
The Fibonacci retracement tool proved effective in identifying dominating price levels in the market, and $30 now appears to be a critical level to hold onto. However, the Directional Movement Index warned that LINK might breach support at $30 and fall further.
Since the 19th of May, the +DI has been subsumed by the -DI. Since then, everytime the LINK price has attempted to rise, it has been yanked back down. As price was already falling, the dominance of -DI could result in LINK’s price moving to test support at $23.