Crypto Market Review, September 8
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- Cardano’s breakthrough continues to be successful
- A turnaround may be near
Despite yesterday’s recovery in the cryptocurrency market, the sentiment among traders and investors remains close to extreme fear as the correction in the market does not seem to be over. Nevertheless, some cryptocurrencies, such as Cardano, still manage to show positive dynamics despite the chaos surrounding them.
Cardano’s breakthrough continues to be successful
On September 4th, ADA finally broke through a local resistance level in the ADA/BTC pair, marking a possible reversal against the first cryptocurrency. The breakthrough of the ascending triangle was a mandatory condition for ADA’s continued growth in the market.
In addition to breaking through the resistance level of the pattern, Cardano has also broken above the 200 and 50-day moving averages, which usually act as a strong barrier for downtrending assets.
If ADA continues the same upward momentum for a few more days, the market is likely to see an important bullish signal – the crossing of the 200 and 50-day moving averages, which is one of the strongest reversal signals for any asset class.
Given Bitcoin’s lack of growth factors and the diminishing dominance of digital gold, Cardano may actually rise against Bitcoin without a general resurgence in the cryptocurrency market.
Among USD pairs, ADA does not show the same price performance as against Bitcoin. Over the past 100 days, the price of Ethereum’s competitor has stagnated, rising only about 4% to its value since the beginning of this summer.
Cardano’s period of low volatility can also be seen as a consolidation before a reversal, given that ADA bottomed out from a technical perspective with no lower or lower highs seen on the chart over the past three months.
A turnaround may be near
With the extreme spike in hedging volume in the financial markets, most investors and traders are preparing for another drop in the market, similar to the one seen in 2008.
Growing open interest in put options is a leading market indicator that usually leads to a reversal. Despite the explosion in total market capitalization in the financial markets, the $8.1 billion spike in volume is still significant and should be taken seriously.
Bitcoin, on the other hand, is still trading at 2022 lows, having recovered only 6% since the start of the summer, when the first cryptocurrency fell below the 2017 ATH, which was previously thought impossible after institutions pushed the price of BTC to nearly $70,000. .
In the coming weeks, the cryptocurrency market is preparing for a spike in volatility thanks to the FOMC meeting and the release of CPI data. Both of these factors are likely to cause a storm in the industry even without the Ethereum merger that will happen around September 13th.
At press time, Bitcoin is trading at $19,180 and has gained 0.5% in the last 24 hours.