Cardano (ADA) more resilient than Bitcoin (BTC) from a technical perspective, here’s why

[ad_1]

Arman Shirinyan

The first signs of a market-wide reversal are happening in the market, but some assets are managing to keep the pressure on

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

ADA still in uptrend

While other assets are in a correction or stall, the Cardano coin has steadily risen and failed to break the local uptrend, putting it on a short list of assets that have risen on the market.

Source: Trading View

Bitcoin, Ethereum, and other assets are currently consolidating around their local highs, which could signal a reversal for the foreseeable future. Unfortunately, Cardano’s resilience was followed by a much more subtle price performance compared to Bitcoin’s 40% in the past, as ADA has only gained 10% in value since the rally began.

The Lido sends a message

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

Whenever the network sees an influx of staked volume, LDO enters the local uptrend as demand for the token grows, as many investors choose Lido Finance as their primary tool to gain liquidity while locking Ether into contracts. smart.

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 projects a shift in the staking trend, which turned upward at the start of the year.

However, aside from a stalemate in Ethereum staking, LDO’s price performance could also be a reflection of growing competition in the liquidity-providing industry as more and more projects with models Commercials similar to that of Lido are appearing in the space, while offering much more flexible terms for investors. .

Aptos rally fades

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

Aptos’ trading volume has been slowly declining since the token hit the local high on January 26, and this will most likely be the main reason for the reversal as retail traders are closing positions en masse after a series of sell-offs. .

[ad_2]