Solana, Cardano, and Ethereum rally amid positive updates

• SOL, ADA, and ETH price spikes pushed them into a strong bull trend.
• SOL, ADA, and ETH witnessed massive liquidations of short positions.

In a recent crackdown led by the SEC, Solana [SOL] and Cardano [ADA] were classified as securities, though Ethereum [ETH] managed to avoid this classification. As a result, the prices of Solana and Cardano experienced a downward trend. However, a summary judgment in the Ripple-SEC case has sparked renewed optimism and positive market sentiment.

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Solana, Cardano, and Ethereum get a boost

The crypto community has been abuzz following 13 July’s court ruling.  Ethereum in particular soared to a three-month high, surpassing the $2,000 mark. The court ruling determined that the sale of Ripple [XRP] tokens through exchanges and algorithms did not qualify as investment contracts.

This ruling has had a “ripple effect” on other layer-1 tokens like Solana and Cardano, which had previously been labeled as securities. Since the publication of the judgment, these tokens have experienced substantial gains in value, with double-digit increases.

Source: Santiment

This uptrend is rooted in the belief that the Ripple judgment can serve as a precedent for overturning the security classification of these tokens. There is hope that the ruling will clarify and serve as a reference point for the regulatory framework within the crypto landscape.

This anticipation has fueled positive market movements and generated a sense of reassurance among investors and enthusiasts alike.

Solana sees eight-month high

Solana displayed strong indications of a significant upward trend when observed in a daily timeframe. On 13 July, it concluded trading at $26.04, marking an impressive increase of 18.6% in price.

As of this writing, its value had further surged by nearly 13%, with the token trading at over $29. This price range represented its highest point in approximately eight months, following a substantial decline experienced in early November 2022.

Source: TradingView

Technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) confirmed the presence of a strong bullish trend as of this writing.

However, the RSI was above 75, signaling that SOL was overbought. This suggested the possibility of a correction before the price resumes a more regular trend.

The volume of trading activity also revealed a notable spike that aligned with the price surge. As of this writing, the volume had soared to over 2.5 billion, representing the highest level witnessed in approximately six months.

This surge in volume further contributed to the overall bullish sentiment surrounding Solana.

Cardano sees little excitement

Like Solana, Cardano also experienced a notable uptrend in price on 13 July. By the close of trading that day, its value had surged by more than 23.5%, reaching $0.357.

However, as of this writing, it had undergone a slight decline of over 1%, though still trading in the price range of around $0.35.

The price spike propelled ADA into a bullish trend and pushed it slightly into the overbought zone, as indicated by its Relative Strength Index (RSI). However, the subsequent slight drop in price has gradually moved it out of the overbought zone, suggesting a potential correction in progress.

Source: TradingView

Furthermore, the trading volume of Cardano witnessed a significant spike, reaching approximately $1.4 billion as of the time of writing. This volume represented the highest level observed in over six months.

Ethereum flashes modest price increase

In contrast to Cardano and Solana, Ethereum displayed a relatively modest uptrend in price when analyzed on a daily timeframe. By the close of trading on 13 July, it had gained approximately 7.14% in price.

But despite this, Ethereum surpassed the $2,000 price range, which it had traded below for a considerable period. However, as of this writing, it had experienced a partial retracement of its gains but was still trading around the $2,000 mark.

Source: TradingView

Also, the Relative Strength Index (RSI) was above 63, indicating a significant bullish trend. As for trading volume, there was no notable spike observed. The volume hovered around 13 billion as of this writing. 

Short positions get liquidated

The daily timeframe charts of Solana, Cardano, and Ethereum all exhibited price spikes, albeit with varying trading volumes. These spikes in price resulted in a significant liquidation of short positions.

How many are 1,10,100 ETHs worth today?

According to data from Glassnode, on 13 July, Solana witnessed the liquidation of short positions amounting to $8.28 million, compared to $2.36 million in long positions. Similarly, Cardano saw the liquidation of $5.22 million in short positions, contrasted with $1.13 million in long positions.

Ethereum experienced the largest liquidation volume, with $35.7 million in short positions closed out, while $5.26 million in long positions were liquidated.