Main navigation

Cardano (ADA) More Resilient Than Bitcoin (BTC) From Technical Perspective, Here's Why

Tue, 31/01/2023 - 17:00
Cardano (ADA) More Resilient Than Bitcoin (BTC) From Technical Perspective, Here's Why
Cover image via

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

The breakdown on some assets, including LDO, Bitcoin and Ethereum, is the first sign investors received in this short-term bull run on the market. But could it be the signal for a longer-term reversal that will send the market back to the prolonged downtrend, or is it just a temporary and necessary correction?

ADA still in uptrend

While other assets are either in correction or moving in stalemate, Cardano's coin has been steadily going up and has not broken the local uptrend, which puts it on a short list of assets that have been ascending on the market.

Cardano chart
Source: TradingView

Bitcoin, Ethereum and other assets are currently consolidating around their local highs, which could be a sign of a reversal in the foreseeable future. Unfortunately, Cardano's resilience was followed by a far more subtle price performance compared to Bitcoin's 40% in the past, as ADA has gained only 10% to its value since the beginning of the rally.

Lido sends message

The movement of LDO is not often considered a signal for the cryptocurrency market, but at the same time, it gives investors an important signal about the state of Ethereum staking. The price performance of LDO is directly tied to the amount of ETH that is staked on the network.

Whenever the network sees an influx of staked volume, LDO enters the local uptrend as the demand for the token rises, since many investors choose Lido Finance as their main tool of gaining liquidity while locking Ether in smart contracts.

Shiba Inu (SHIB) Price Suddenly Turns Green as Whale Transactions Jump 56%

Yesterday, LDO broke down and fell below the local 21-day moving average, which usually acts as a signal line that gives us information about the strength of the existing trend. The move below it projects a shift in the staking trend, which became ascending at the beginning of the year.

However, apart from a stalemate in Ethereum staking, the price performance of LDO could also be a reflection of the rising competition in liquidity provision industry as more projects with business models similar to Lido's appear in the space, while offering way more flexible terms for investors.

Aptos' rally is fading

The massive liquidation volume at around $20 on Aptos led to the massive reversal of the token on the market as it lost almost 20% of its value almost immediately. All signs we see on it today show that the token might reverse in the foreseeable future and continue the downtrend or enter another stalemate. 

Aptos' trading volume has been slowly descending since the token reached the local high on Jan. 26, and it will most likely be the main reason behind the reversal as retail traders are massively closing their positions after a series of liquidations.


Latest Press Releases

Is Bitcoin Mining Legal? Regions in the World Where Mining Is Legally Permissible
Zircuit, New ZK-Rollup Focused on Security, Launches Staking Program
AI Analysis Launches The AIA Mastercard – The Future of Crypto-Fiat Transactions
VAP Group hosts the majestic Global Blockchain Show 2024 in Dubai
Digital Transformation Week Is Returning to Santa Clara This Summer
Arab Financial Services (AFS) Enter Strategic Alliance with Xpence to Innovate SME Financial Management in Bahrain
Breaking Records: UXLINK Attracts 978,000 New Web3 Wallet Registration with $78,000,000 Deposit asset from February 01 to February 22, 2024
What To Expect from The Bitcoin Halving in April 2024
Testnet Launch for dWallet Network - Composable Modular Signature Network
ETH Denver Top Builders Base by Supermoon, Cointelegraph, NDC, Horizen, & Conflux
Citrea, Bitcoin’s First ZK Rollup, Announces $2.7M Seed Funding
Chromia’s Flagship Game ‘My Neighbor Alice’ Unveils 2024 Roadmap
First-Ever ICO on Bitcoin Blockchain: $3.1M Raised in Under 6 Days
CoinList to Host the MASA Token Public Sale as it Unleashes the World’s Personal Data Network
Sui Reveals Initial Wave of Speakers, Famed Venue for First Annual Basecamp Event
Vitalik Buterin Comes to Taiwan as Keynote Speaker at ETHTaipei 2024
Elevating Europe’s Crypto Hub: Next Block Expo Returns to Poland
Bridging the Data Trust Gap: 2024 RegTech Confab Set to Unlock Africa’s Economic Potential
ApeX Protocol Partners with Alertatron to Enhance Automated Trading Capabilities
TeachMeCode Institute Announces Grand Opening of Cutting-Edge Dubai School
Our social media
There's a lot to see there, too

Popular articles