Jamal Al-Farouq On Thursday, both Cardano (ADA) and Solana (SOL) faced substantial drops, reaching their lowest points in three months. The prevailing bearish sentiment in the cryptocurrency markets persists due to concerns surrounding the recent lawsuits targeting Binance and Coinbase.
Cardano (ADA)
ADA plummeted to a three-month low on Thursday, as traders remained apprehensive following the lawsuits filed by the U.S. Securities and Exchange Commission (SEC). After reaching a peak of $0.3376 on Wednesday, ADA/USD fell to a low of $0.3196 during the current trading session, marking the token’s lowest level since March 15 when it hit a bottom of $0.3166.
Analyzing the daily chart, this decline coincided with the relative strength index (RSI) dropping significantly into oversold territory, sinking below 30.00. However, the index has rebounded and currently stands at 34.21, slightly above a crucial resistance level at 33.00. If this upward momentum continues, bullish traders will aim to reclaim the $0.3500 level.
Solana (SOL)
Similarly, Solana (SOL) experienced a multi-month low during today’s trading session. SOL/USD reached an intraday low of $18.29 on Thursday, just a day after the price was above $20.00. This latest decline brought Solana to its weakest point since March 13, when the price dropped below $18.00.
The overall performance of SOL in the last seven days indicates a nearly 9% decline, with the 10-day moving average (MA) falling sharply. The trend line is on track to cross below the 25-day MA, indicating further downward movement. If bearish sentiment prevails, the next target is likely to be $16.00.
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Do you think Solana could fall to $16.00 this week? Share your thoughts in the comments section.
Table Of Contents
Frequently Asked Questions (FAQs) about cryptocurrency market declines
What caused the significant declines in ADA and SOL prices?
The significant declines in ADA and SOL prices were primarily influenced by the prevailing bearish sentiment in the cryptocurrency markets. Traders were particularly concerned about the potential impact of the recent lawsuits filed against Binance and Coinbase by regulatory authorities. These lawsuits raised uncertainties and increased nervousness among market participants, leading to the downward pressure on ADA and SOL prices.
When did ADA and SOL hit their lowest points?
ADA hit its lowest point on Thursday, reaching a three-month low. The price dropped to $0.3196 during the trading session, marking its lowest level since March 15 when it hit a bottom of $0.3166. Similarly, SOL also experienced a multi-month low on the same day, with the price falling to an intraday low of $18.29. This was the weakest point for SOL since March 13 when the price dropped below $18.00.
Will the prices of ADA and SOL recover soon?
The recovery of ADA and SOL prices is uncertain and highly dependent on market dynamics and investor sentiment. While there is no definitive answer, it’s important to monitor market trends, news, and any developments related to the Binance and Coinbase lawsuits. Traders and investors should exercise caution and consider various factors before making any investment decisions.
How can I stay updated on price analysis and market updates for ADA and SOL?
To stay updated on price analysis and market updates for ADA and SOL, you can register your email address to receive weekly technical analysis reports. These reports can provide insights and information on the latest price movements, trends, and potential support/resistance levels for these cryptocurrencies.
More about cryptocurrency market declines
- Binance
- Coinbase
- U.S. Securities and Exchange Commission (SEC)
- Cardano (ADA)
- Solana (SOL)
- Cryptocurrency Market Analysis
- Understanding Relative Strength Index (RSI)
