Connect with us

Altcoins

Solana sees biggest daily loss among top 10, but here is a reason for hope

Published

on

Solana sees biggest daily loss among top 10, but here is a reason for hope

The latest fashion trend in crypto is in and that’s why you’re seeing red stripes everywhere – vertical, not horizontal, mind you. As Bitcoin plunged by 8.43% in a day to reach its press time price of $36,369.84 and Ether dropped by 6.92% to trade at $2,737.81, other alts also slipped down the charts.

One large shocker, however, was Solana [SOL] which fell by 13.11% in a single day to hit a price of $81.74. This was the biggest daily loss in value amongst the top ten coins.

Fighting with heart and SOL

As you may have expected, Solana volumes were surging at press time, though the spikes weren’t as high as those in April when SOL’s price dropped. For now, it looks as if investors have their panic under control. However, this could soon change.

On the other hand, another metric that saw a sharp drop was development activity on Solana. In spite of trying to bring more developers on board, crypto has seen a steady decline in development activity since December 2021.

These revelations emerge as Messari published its report on Solana’s performance in the first quarter of 2022. Discussing Solana’s well-known network challenges, the report stated,

“Network performance issues occurred on 13 December, 7 January, and 21 January. In each instance, throughput deteriorated and resulted in a material decrease in TPS and an increase in failed transactions.”

The report added this took a toll on the network’s value.

That being said, there are reasons for bulls to feel hopeful. TradingView’s Bollinger Bands did indicate that volatility was increasing, but notice how the candles for SOL are breaking through the lower band. This is a sign that the asset could be deemed oversold – which could trigger a rally again.

Source: TradingView

Advertisement

Adding to that, the Awesome Oscillator [AO] revealed that green bars were flashing at press time, which indicates some bullish momentum might be in store.

Glass half full

Messari’s report noted that Solana achieved growth milestones in the first quarter of the year. Though admittedly overshadowed by network issues, the report added,

“Several developments accounted for the Q1 results, including new NFTs and growing NFT markets that reached billion-dollar sales volume; the diversification of TVL across DeFi applications; improvements in UX such as the Phantom mobile wallet; and the launch of new applications across several sectors other than DeFi.”

Sahana is a full-time journalist at AMBCrypto. She has a Masters in Journalism and her areas of study include crypto-regulation, digital society, privacy, and intersectionality. Ask her about film photography and philately.

Advertisement

Altcoins

Zcash [ZEC]: Breaking down the potential effects of the current bearish structure

Published

on

Zcash [ZEC]: Breaking down the potential effects of the current bearish structure

As the basis line (green) of the Bollinger Bands (BB) constricted the revival attempts for nearly seven weeks, Zcash [ZEC] bears pulled the altcoin down to yearly lows last week. The basis line has crippled the buyers’ ability to sustain a close near the upper band of the BB.

With the current rising wedge setup being solid, a recovery toward the $113-level could see a slowdown. At press time, ZEC traded at $103.9, down by 2.63% in the last 24 hours.

ZEC Daily Chart

Source: TradingView, ZEC/USDT

Since its multi-month April highs, ZEC bears have persistently steered the price south after propelling an up-channel breakdown. On its way down, the price action underwent strong liquidations whilst the basis line of the BB constricted the bullish comebacks.

Consequently, the alt was down by nearly 67.42% (from 28 Mar) and dropped to hit its 16-month low on 12 May. After the $83-baseline posed some hurdles for the sellers, the bulls quickly provoked a short-term string of green candles. After forming a morning star candlestick pattern, the altcoin continued its oscillation in a bearish rising wedge. 

A continued trajectory in the current pattern could face strong barriers in the $113-zone. This area represented a host of barriers that includes the upper fence of the Pitchfork, the 38.2% Fiboancci resistance. Any reversal from this zone could result in a breakout from the wedge and find testing grounds in the $96-zone. In an unlikely event of invalidating the strong bearish tendencies, any close above the $113-level could test the $126-level.

Rationale

Advertisement

The Relative Strength Index depicted a gradual uptrend from its oversold lows. As far as the 41-support stood strong, the buyers still had conceivable means to stall the near-term liquidations. But with the -DI line looking north, keeping a check on the selling pressure could be a menacing task for the bulls.

Conclusion

In light of the confluence of multiple hurdles in the $113-zone, ZEC could see a short-term pullback. Any close below the wedge could result in a pathway to its $96-zone lows. To alter the existing narrative, the bulls have to find a spot beyond its Pitchfork and the 38.2% level.

Finally, keeping an eye on Bitcoin’s movement and the broader sentiment would be important to complement the aforementioned analysis.

With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

Advertisement

Continue Reading

Altcoins

Polkadot: Why DOT can be expected to lead the upcoming bull run

Published

on

Polkadot: Why DOT can be expected to lead the upcoming bull run

Polkadot’s native cryptocurrency DOT has so far managed to remain on the list of top 20 cryptocurrencies by market cap. The latest market events have forced investors to re-evaluate their portfolios in favor of digital currencies that have strong fundamentals, but does DOT fit these criteria?

Polkadot’s multi-chain approach can provide better insights into whether investors consider DOT to be worth having in their portfolio. It announced that interoperability and multi-chain as the future of blockchains are among the key areas of focus during the WEF22 conference on 16 May.

Polkadot’s ecosystem has been growing rapidly as it continues to onboard more projects through para-chain auctions. While this approach bolsters the interoperability agenda, it also boosts organic demand for DOT from projects running as parachains. The para-chain approach allows the community to support projects that align with Polkado’s values and can provide value to the ecosystem.

DOT’s price action and on-chain metrics 

Although DOT is slated to leverage organic growth as the Polkadot ecosystem continues growing, it is also heavily correlated with Bitcoin. It struggled to maintain a healthy recovery after last week’s market crash in which it bottomed out at $7.30. However, it bounced back to $10.07 at the time of writing.

Source: TradingView

It seems DOT’s recovery is currently limited by low buying volumes. It is currently trading at a 58% discount from its April 2022 top. DOT’s price is also at an 82% discount from its current ATH of $55.09 which it achieved in November 2021.

DOT’s supply held by whales metric registered an uptick between 16 May and 17 May, courtesy of slight accumulation. However, the same metric recorded outflows which have so far pushed back to monthly lows. The metric shows that whales are selling and it reflects the lack of adequate buying volumes and failure to register a significant rally.

Advertisement

Source: Santiment

DOT’s developer metric achieved a significant uptick and is currently in its highest monthly range. The uptick is due to the recently announced Polkadot which also highlights the network’s commitment to security.

Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael’s writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.

Advertisement

Continue Reading

ada

Is Cardano’s [ADA] rally probable yet? The answer might impress you

Published

on

Is Cardano’s [ADA] rally probable yet? The answer might impress you

Cardano’s [ADA] price has been under a strong bearish influence, especially since dropping from the vital $1.2-resistance. After falling below the 20 EMA (red) and 50 EMA (cyan), the altcoin was on a streak of liquidations while correlating with the broader sell-offs.

Altering the overall outlook was still a long shot for the bulls while they had to find renewed buying pressure to snap the constraints of the 23.6% Fibonacci resistance. At press time, ADA traded at $0.5307, down by 3.12% in the last 24-hours.

ADA Daily Chart

Source: TradingView, ADA/USDT

Aggressive sell-offs from the $1.2-ceiling resulted in a 67.35% drop from ADA’s April highs. As a result, after falling below its Point of Control (POC, red), ADA poked its 15-month low on 12 May. On its way south, the 61.8% Fibonacci level held up well after restricting the falling wedge breakout. While hampering the bear run, buyers finally induced a few green candles but failed to support it on elevated volumes.

Over the last six days, the altcoin saw an expected bearish pennant breakout as the price action approached the 23.6% level barrier. With an overextended gap between the 20 EMA and 50 EMA, the sellers exhibited their superior edge in the current scenario.

A continued revival from its immediate support could see an anticipated hurdle in the $0.59-zone near the 23.6% level. However, without sufficient volumes, the buyers would find it difficult to challenge the resistance offered by the alt’s near-term EMAs. The buyers would now aim to lower the gap between the 20/50 EMA in the coming days.

Rationale

Source: TradingView, ADA/USDT

Advertisement

The Relative Strength Index suggested that sellers have a clear advantage in the current market structure. The buyers needed to push the RSI above the 38-level to propel a short-term rally beyond the 23.6% level on the charts.

An inability to pick Aroon up (yellow) from the zero-mark could lead to further undesired losses. AN eventual recovery from this level would open doorways for a smoother recovery. 

Conclusion

Looking at the current bounce-back from the $0.5-level, ADA could slam into the 23.6% level for testing its resistance. An eventual break above this level could pave a path to challenge the constraints of its near-term EMAs. But the threats along the Aroon up indicator could delay the potential of a bull run.

At last, ADA shares a high correlation with the king coin. Thus, traders/investors should keep a close watch on Bitcoin’s movement to make a profitable move.

With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

Advertisement

Continue Reading

Trending