Cardano vs Ethereum competition will only get fierce over the coming months. ADA withstood extreme bearish pressure in the recent past and noted a strong surge. It was among the few alts holding on to its price despite volatility seen in the crypto market.
After failing to breach resistance at $1.83 on 2 June, ADA was trading at $1.77. Visible Range indicator suggested there was not much trading activity taking place at this level but the price has remained within $1.63 and $1.83 for the second consecutive day. The bullishness in the market may have supported the current price, as the point of control also remained much lower at $1.23.
As ADA consolidated between $1.63 and $1.83, 50 Moving Average was also inching closer to the candlesticks. This could offer additional support in case the price turns around. However, chances of a price swing were scanty at this point as the market lost momentum. The restricted price movement has squeezed the momentum out of the market as Awesome Oscillator remained at zero. This lack of momentum could also confirm further consolidation in ADA market.
Decentralized Finance [DeFi] projects were lauded for resisting the changing trends in crypto market. Uniswap’s UNI was among the defi tokens that swiftly bounced back from the loss and was trading at $27.94. The surging price coincided with the signal line as it noted the rise of bullishness in the UNI market.
Even though the asset remained 38% under its all-time high of $44.92, the market was seeing more money entering. Chaikin Money Flow that was in the negative when the price collapsed, now moved on to the positive territory and was showing a sharp rise. Traders were eagerly buying the digital asset at the current value to stabilize the market. This was also highlighted by the Relative Strength Index that took off from the oversold zone and remained close to equilibrium.
ADA may continue to trade in its current range unless there was a shift in volatility.
Unlike most other alts undergoing a period of consolidation, Chainlink market suggested a bearish hold on the price. LINK traded at $30.51 as it rejected resistance at $33. The 50 Moving average hovering over its price was an indication of the downward pressure on the value.
The Fibonacci retracement tool was useful in spotting the dominant price levels in the market and currently, $30 looks like a crucial level to hold on to. But the Directional Movement Index suggested LINK may breach support at $30 and head lower.
The +DI has remained under the -DI since the sudden crash on 19 May. Since then, whenever LINK price tried to push higher, it was immediately pulled down. As price was already falling, the dominance of -DI could result in LINK’s price moving to test support at $23.