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Bitcoin (BTC) to $70,000 Imminent? Solana (SOL) to Pump Ethereum: Here's How, Cardano (ADA) Bounces Around $0.3, But for How Long?

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Fri, 21/06/2024 - 0:30
Bitcoin (BTC) to $70,000 Imminent? Solana (SOL) to Pump Ethereum: Here's How, Cardano (ADA) Bounces Around $0.3, But for How Long?
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Bitcoin is finally entering reversal mode, with the price of the first cryptocurrency sliding in above the $65,000 zone. However, it is still moving below key support levels like the 50 EMA and is currently consolidating at the 100 EMA. The most decisive factor for a recovery would be momentum that is not present at this exact moment.

It is critical that Bitcoin maintains above $65,000 for the near future. Strong support has been seen at this level, which might serve as the basis for a reversal. If Bitcoin is able to overcome the immediate resistance at the 50 EMA or roughly $67,000, traders are hopeful of a possible rebound. 

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BTC/USD Chart by TradingView

Additionally, the RSI which is centered on 47, shows that Bitcoin is neither overbought nor oversold, pointing to a period of consolidation prior to any notable movement. The macroeconomic environment as a whole is one factor influencing Bitcoin's current performance. Investor sentiment in a variety of markets, including cryptocurrency, has been influenced by worries about inflation and possible interest rate increases by central banks. 

Bitcoin's long-term prospects are still promising despite these obstacles because of its growing institutional adoption and ability to act as an inflation hedge. Given its continued institutional interest and widespread adoption, Bitcoin's long-term prospects appear bright. 

Solana's questionable position

While Solana clearly gained some respectable strength back in May, the situation for the asset has changed, and it has been going down steadily for the past 20 days. The SOLETH chart, often used for gauging market volatility, is clearly exhausted and might provide us with some growth in the future.

The Solana vs. Ethereum chart, which contrasts the two most powerful altcoins available, is an important comparison. This comparison makes the relative strength and possible volatility of the altcoin market easier for traders and investors to understand. 

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A positive outlook for altcoins overall is frequently indicated by Solana's strong performance versus Ethereum and vice versa. Because SOLETH captures the growth and performance dynamics of two significant cryptocurrencies that are not Bitcoin, it is regarded as a barometer for market volatility. In the domains of NFTs and decentralized finance (DeFi), Solana and Ethereum are renowned for their strong ecosystems and noteworthy use cases. 

Significant movements in these two assets may point to more general trends on the cryptocurrency market. Ethereum frequently serves as a benchmark since it is the bigger and more well known of the two. Conversely, Solana stands for more recent quickly expanding blockchain initiatives. It is possible to infer market sentiment regarding innovation and growth in the cryptocurrency space from the interaction of these two assets on the SOL/ETH chart.

Cardano's unexpected bounce

Cardano somewhat bounced from a local support level at approximately $0.35, with the potential to fight with the 26 EMA for momentum in the next few days. This bounce is a small but crucial step toward breaking an aggravating downtrend that has plagued the cryptocurrency for months.

Holding above $0.35 is critical for Cardano in the near term. This level has provided a lot of support and might provide the groundwork for a future upswing. Cardano may indicate the start of a recovery phase if it can muster enough momentum to test and possibly break above the 26 EMA.

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An RSI of about 37 indicates that ADA is in oversold territory, which may draw in buyers searching for cheap points of entry. But Cardano has not exactly performed well over the long haul. Even with the community's strong support and the project's lofty objectives, ADA has had difficulty holding onto its value. Cardano has experienced a protracted decline and has not been able to return to its prior highs since hitting its all-time high in early 2022. 

Numerous reasons contribute to this subpar performance, including the general mood of competition from rival blockchain platforms and slower-than-anticipated development progress. Although anticipated by many investors, the Cardano ecosystem has not yet produced the ground-breaking applications.

Although the deployment of smart contracts on the Cardano network was a big step forward, neither the number of dApps nor user adoption has increased significantly as a result of it. Some investors have become frustrated with ADA's slow development, which has made them doubt the company's long-term prospects.

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