The decline in Cryptocurrencies has been going on for more than a month, which has sent the cryptos down and has lost significant value in that time. Ethereum and Solana have shown strong bullish momentum in the past few months and held up better than most cryptocurrencies during this retreat. Although faced with some decent indicators of support, let’s see if those indicators hold up and the trend turns bullish again.
Solana Daily Chart Analysis – Will Solana Drop To $ 130?
Solana has been incredibly bullish since August, rising from around $ 25 to $ 260 in two waves, first in August and then again in October. During this time, moving averages acted as support, particularly the 50 SMA (yellow), although unlike some other cryptos, SOL / USD is still holding more of the gains.
The price has fallen below most of the moving averages and the 20 SMA (gray) has turned up into one resistance so there is a chance the price will drop to the closest support at $ 130. If that is the case, this would be a good place to buy Solana.
Solana suffered from news of a possible network outage on Friday earlier this month. Due to Raydium’s latest AcceleRaytor IDO, there was a network congestion, but this did not bring the network to a standstill. Although there were delays in transaction processing, this resulted in frustration for several users facing the Solana ecosystem because of its high throughput. prefer Ethereum’s network congestion issues. However, this had no impact on the price, so the decline is due to the bearish sentiment in the crypto market.
Ethereum daily chart analysis – ETH tests the 100 SMA
The 100 SMA continues to hold up as a support
Ethereum has also shown buying pressure in recent months, albeit not as strong as in Solana coin. Ethereum was also more stable, with the market average indicator being Bitcoin was acquired. Ethereum failed to break the $ 5,000 mark and fell below $ 4,000 during that retreat, but the 100 SMA has held up as support despite sellers continuing to test it.
The long-awaited upgrade to the Ethereum network, which could reduce its energy consumption by 99%, has been delayed again. That weighed on Ethereum, while on the other hand the Ethereum-based transaction shuffling protocol, Tornado Cash, announced the launch of an upgraded pool called Nova, which allows the use of shielded transfers of token deposits without the need to withdraw from the pool itself, as well as depositing and withdrawing any amount from ETH. So, ETH / USD has now stalled for about two weeks at the 100 daily SMA,
ETH / USD
Source: Crypto News Deutsch