Solana (SOL) and Cardano (ADA) Under Bearish Pressure, But Why Should Traders Hold Off On The FOMO?

Solana (SOL) and Cardano (ADA) Under Bearish Pressure, But Why Should Traders Hold Off On The FOMO?

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Bitcoin, the big kahuna of crypto, is currently playing a risky game around the $41,000 mark – it's been a bit of a rollercoaster, with about $40 million blown in BTC bets recently. Despite a week-on-week loss surpassing 6%, Bitcoin has still had a pretty good year, up a solid 145%. The latter six months saw a huge spike, thanks to excitement over new BTC exchange-traded products. However, with the expected “Santa rally” possibly done and dusted, and big regulatory decisions coming up in the new year, everyone's wondering what the crypto king will do next.

With its own set of ups and downs, Ethereum is following Bitcoin's lead, hovering around $2,100. The wider altcoin sector, including stars like Solana (SOL) and Cardano (ADA), has been a bit shaky too, each recording some losses in the market that's dropped nearly 3% overall. Amidst all this, there's ScapesMania (MANIA) that’s turning heads with its approach to keeping customers engaged and offering sweet rewards. With some smart token strategies and tempting presale deals, MANIA adds a fresh twist to the story, making us all guess what surprises lie ahead in the crypto realm: will the bulls' hopes for a late-December surge materialize or is patience until the new year the wiser strategy?

ScapesMania: A Golden Opportunity in the World of Crypto Presales

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Solana (SOL) Technical Analysis

Solana (SOL) has been experiencing an intriguing period, fueled by the unexpected surge in Bonk notably impacting the sales of Solana's Saga phone, which were previously considered a failure. The phone, initially launched with a price tag of $1,000 and later reduced to $599, has seen a dramatic increase in demand, thanks to a 30 million BONK token airdrop offered to each phone owner, valued at over $700 at its peak. As of today, Bonk has accumulated a 30-day gain of over 500%.

Source: TradingView=

From a technical analysis standpoint, SOL currently trades between its first support at $62.63 and its first resistance at $79.44. The Simple Moving Averages (SMA) offer mixed signals, with the 10-day SMA at $71.72 slightly above the 100-day SMA at $68.68, suggesting a possible bullish trend. However, the Relative Strength Index (RSI) at 40.03 leans towards a bearish sentiment, indicating that Solana (SOL) might be underbought. Other indicators like the Stochastic %K at 12.23 and the Commodity Channel Index (CCI) at -184.84 reinforce this bearish outlook. The Average Directional Index (ADI) at 26.05 shows a lack of strong trend, while the negative MACD level at -0.6 and a Momentum of -5.3 further complicate the picture.

In a bullish scenario, SOL could capitalize on the recent positive news and breach $79.44, aiming for the second resistance at $87.84. A sustained interest in the Solana (SOL) Saga phone, coupled with the BONK token's performance, could drive investor confidence, propelling altcoin towards its more desired target at $104.65. Conversely, in a bearish scenario, SOL might succumb to market corrections following the weekend's hype. If it breaks below $62.63, the next levels to watch are $54.22 and $37.41. This downward trend could be exacerbated, if the hype around the Saga phone and BONK token subsides, leading to a potential reevaluation of the intrinsic value and utility of Solana's (SOL) offerings.

Cardano (ADA) Technical Analysis

Cardano (ADA) has recently been in the spotlight, showcasing remarkable growth in the DeFi sector. Its total value locked (TVL) has soared from a modest $50 million to a staggering $384 million in 2023, marking an 768% increase over the year. This surge in market value of ADA, a remarkable 115% since October, has not only bolstered its market presence, but also significantly fueled the expansion of Cardano's (ADA) ecosystem: key contributors like Indigo, Minswap and Liqwid have played significant roles in this uptick.

Source: TradingView

In technical terms, ADA is currently trading between its first support at $0.5031 and first resistance at $0.6687. The SMAs present a mixed view, with the 10-day average at $0.5827 suggesting recent bearishness, while the 100-day average at $0.5268 indicates a slightly bullish trend over a longer period. The RSI at 32.89 leans towards oversold territory, suggesting potential for a price rebound. The Stochastic %K is at a low 16.11, also pointing towards oversold conditions. However, the ADI at a low 20.41 indicates a lack of strong trends and the CCI at -172.71 reinforces this bearish sentiment. The MACD and Momentum indicators further echo this bearish outlook with values of -0.01086 and -0.05261, respectively.

In a bullish case, if Cardano (ADA) manages to break above the resistance at $0.6687, it could target the next ceilings at $0.7568 and potentially $0.9224, supported by increased adoption and TVL growth within its ecosystem. On the flip side, a bearish scenario could see ADA retracing back to its lower support levels at $0.5031, and possibly down to $0.4257 or $0.2601, if the current market sentiment doesn’t improve. This bearish outlook might unfold, if the broader market sentiment dampens or if Cardano (ADA) faces any setbacks in its ecosystem development. 


In the current crypto landscape, Bitcoin maintains its dominant presence, though it's navigating through some volatility around the $41,000 mark. Ethereum and other altcoins like Solana (SOL) and Cardano (ADA) are following Bitcoin's fluctuating pattern: SOL, specifically, is experiencing its own unique challenges and opportunities highlighted by the recent surge in interest around its Saga phone and the BONK token; ADA is trading between key technical levels, with potential bullish and bearish scenarios hinging on market sentiments and its growing significance in the DeFi sector. The overall crypto market remains in a state of flux where each coin's performance is closely tied to broader trends and individual ecosystem developments.

Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.

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