We have launched Cryptogram, an India-focused free weekly newsletter on blockchain tech, global crypto markets, and Web 3.0 technologies which promise to change our future. If you would like to subscribe to this newsletter, click here. You can read our past editions here.
Quick brief on Bitcoin and Ethereum
Bitcoin (BTC) continues to experience selling pressures at overhead resistance levels as massive liquidation events triggered by major decentralized finance (DeFi) companies leave no room for major trend reversals in the near future. BTC got rejected at $22,450 a few days ago and has been attempting to retest $20,000 ever since. The 200-week moving average which will indicate a strong uptrend is currently at $22,630. Ethereum (ETH) has been mimicking the market leader by getting rejected near $1,280 on the same day as BTC did. ETH is likely to underperform in the current market conditions as BTC’s dominance is expected to go up in the coming weeks.
After the successful launch of the Vasil upgrade on Cardano’s testnet, the crypto community is carefully watching ADA’s reaction and the subsequent impression on the ADA investors and enthusiasts. Is ADA in for a reversal or will the Vasil upgrade fail to turn the tides in ADA’s favor amidst the crypto winter? Let’s find out.
The release of the minutes of the Fed’s meeting provided no particular driver to the direction of the broader crypto market. Lacking any external push and pulls, the weekend afforded a bullish momentum for the cryptocurrencies in general, but ADA, in particular, was less affected. At the time of writing, ADA was trading at $0.45, down by 3% in the last 24 hours and up by a minor 0.4% in the last seven days. The daily trading volumes have also seen an increase of 17.5% in the last 24 hours.
Talking about ADA on-chain metrics, a lot of activity has been happening. Data from Santiment showed that ADA whales were accumulating large amounts of ADA, in anticipation of the Vasil upgrade. Historically, Cardano’s post-upgrade trajectory has witnessed massive spurts in prices. The data showed that wallet addresses possessing 10k-100k ADA have remained stable in the past month. The ADA sharks have so far accumulated 79.1 million ADA.
.png?w=640&auto=format%2Ccompress)
<source: Tradingview, Binance>
In the 4-hour time frame, ADA has been consolidating since the second week of June and moving sideways. ADA has successfully broken above its long-term trendline resistance forming since May. However, ADA needs to gather momentum to confirm a breakout. The Bulls will have to push ADA prices beyond the psychological resistance of 0.5 to continue the recovery rally. ADA's RSI is showing a neutral signal at 42 and its moving averages are all showing a strong sell signal. In the event of a downturn, ADA may slide to test its support at $0.40.
The much-anticipated Vasil hard fork has been completed on the Cardano testnet which promises broad performance upgrades. Once the fork is migrated to the mainnet, the Vasil hard fork will allow faster block creation and greater scalability for decentralized apps (DApps) running on Cardano. Vasil will also enable interoperability between Cardano sidechains, one of the main features developers intend to launch in the current Basho phase of the blockchain’s development. Basho is the fourth development phase for Cardano that focuses on scaling.
The uncertainty in the market against the optimism in lieu of the pending upgrade may cause the prices to move in any direction. For the time being, projects that focus on the right metrics like decentralization, scalability and security are poised to perform well in the next phase of the bull market. Only time can answer whether Cardano or any other altcoin project that aspires to create a better DeFi ecosystem can deliver value to its investors or not in the future. Investing in these bearish circumstances comes with its risks and uncertainties, so investors are advised to tread these waters carefully.
Use promocode TNM51 at www.giottus.com/profile#promo after registration to get Rs.51 worth free Bitcoin.
Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.