Cryptocurrencies are trying to resume the larger uptrend, now that the bearish momentum of the last three months has stopped. They have been making some respectable gains over the last week, which saw Bitcoin (BTC) increase to $45,600 from $33,000, but yesterday, we saw a rejection at resistance indicators for most major cryptos, including Cardano and Ripple. However, they haven’t exactly turned bearish after the rejection, so let’s see if they can resume the uptrend again.
Cardano Daily Chart Analysis – ADA Stops at the 50 SMA
Cardano has been making progress as a blockchain since September, when it released the Alonzo upgrade, which made it possible for smart contracts to be deployed on the network. It did suffer from congestion of the first DEX SundaeSwap, which went live in January.
Will the 50 SMA reject the price once again?
However, Cardano’s team of developers made further upgrades last Friday, to increase the block size by 11%, in order to make it more scalable and expand the Plutus script memory units at the same time, enabling smart contracts to process a greater quantity of data. The crypto exchange, Kraken, saw Cardano grow exponentially in every adoption metric, both on-chain and off-chain.
Nonetheless, Cardano’s ADA token has been declining since September, falling from around $3.10 to $1. Sellers did pierce the support zone at $1, but they were unable to break it, and after the price stuck above that for more than a week, the reversal started last week. But the 50 SMA (yellow), which has been acting as resistance, once again stopped the climb yesterday. So, this looks like a weak attempt to turn bullish, but let’s wait and see if ADA/USD can resume the upside momentum again, or if it will head for the support at $1 again. Right now, we are not buying! We are just observing the price action.
Ripple Daily Chart Analysis – The 200 SMA Turns From Support Into Resistance for XRP
In the last few days, Ripple coin has seen the strongest bullish run since September last year. XRP/USD was trading at around $0.60 last week, but after some positive news regarding the SEC lawsuit, it surged by around 50%, increasing above $0.90. Presiding judge Analisa Torres unsealed three sets of documents, which means that the case is picking up again and this will make it impossible for the SEC to prove its point.
Will XRP fall back to the bottom of the range?
Meanwhile, Ripple continues to expand its cross-border money transfer programs. They have now partnered with Modulr Finance to offer more efficient payments into the UK and Europe from the rest of the world. So, the fundamental situation is improving for Ripple, and when the lawsuit finally draws to a close, XRP will skyrocket. For now, the 200 daily SMA (purple) has halted the climb, so it remains to be seen what XRP will do from here. If it moves above the 200 SMA, then the bullish trend will be back on. Otherwise, if the decline resumes, we will wait for the support zone at $0.50-60.