- Solana soars another 14% and trades a new all-time high of $84.
- Cardano risk another dip toward $2 if the MACD confirms a sell signal in the short term.
The cryptocurrency market is still red on Friday, especially for the top fifty cryptocurrencies. As discussed, Bitcoin is holding at crucial support, provided by the 200-day Simple Moving Average (SMA). However, more losses linger following an upsurge in exchange inflows.
Ethereum leads the altcoin pack with sluggish trading. On the brighter side, Ether has weathered down the correction, stopping losses above $3,000. On-chain data by Santiment recently confirmed that Ethereum is nearing a buy the dip opportunity to see it close the gap to $3,400 and later $4,000.
Similarly, Cardano is down 4.3% in the last 24 hours. The smart contract token can barely hold above $2.5 (previous all-time high). Binance Coin and Ripple have been spared the ax, with losses amounting to 4.4 and 6.7%, respectively.
Solana dropped to $65 on Thursday following rejection from $80 earlier in the week. When support at $70 broke, most analysts expected volatility to push SOL around $60 (the previous all-time high).
On the contrary, the smart contract token rebounded from $65 and closed the gap to $80. With a new all-time high at $84, investors are confident that Solana can quickly rise to $100.
Realize that last week, Solana led all crypto assets in the amount investment inflows from institutions. Investor appetite for SOL is exceptionally high and will likely continue to euphoria and the fear of missing out (FOMO).
Intriguingly, an incoming sell signal by the Moving Average Convergence Divergence (MACD) indicator has been canceled. As the MACD flips bullish again, the path with the least resistance would be upward in the near term.
SOL/USD Daily ChartLive Chart
SOL/USD price chart by Tradingview
Cardano, like Solana, has been roaring since the beginning of August, becoming the first large market cap crypto asset to trade a new all-time high after the crash in May. However, the bearish wave sweeping across the market this week has taken a significant toll on the bulls.
The new record high traded at $3 has been disappearing into the distance as Cardano losses ground to $2.5 (the previous all-time high]). Meanwhile, ADA is trading at $2.4 while holding at the ascending channel’s lower boundary.
ADA/USD Daily ChartLive Chart
ADA/USD price chart by Tradingview
A sell signal about to come into play from the MACD may validate the downtrend toward $2. The RSI in the same timeframe has retreated from the overbought area. Closing the gap to the midline will accentuate the bearish grip.