Cardano (ADA) Enters the Bearish Zone, Solana (SOL) to Turn Bullish Soon?

After accelerating the decline late last week, the cryptocurrency market has stalled in the last few days and it seems undecided what to do next. Usually, the pattern has been that cryptocurrencies have consolidated after the decline, before the bullish trend again, so this might be the case right now. Although, some cryptocurrencies are looking like they’re itching to turn bullish again such as Solana, while others such as Cardano remain quite bearish.

Solana Daily Chart Analysis – The 100 Daily SMA Keeps Holding As Support

Solana is a very promising blockchain, making fast progress since it was launched in April 2020. The Solana network exceeds 35 billion transactions, making it one of the fastest networks. It’s for this reason, as well as low fees, that a large number of projects are being built on the Solana network, exceeding 500 and ranging from wallets to decentralized exchange (DEX), storage solutions, digital games etc.

This has kept Solana bullish as it increased from around $25 in July to $260 early in November. The 50 SMA (yellow) was providing support for this cryptocurrency, but it was broken last weekend as the crypto market crashed, pulling Solana down with it.

Although, Solana keeps showing bullish pressure, only suffering minor losses, while most of the market has gone through a bigger decline. The 100 SMA (green) continues to hold as support, while the stochastic indicator has become oversold, suggesting that the retreat down is complete. Sellers don’t seem to have enough strength to push further below, so this suggests that SOL/USD should reverse up and resume the bullish trend soon.

Cardano Daily Chart Analysis – ADA Shows No Signs of Life

Cardano is bearish below $1.50

Cardano’s fundamentals remain quite strong, but it continues to show no signs of life. In fact, this cryptocurrency has been the most bearish among the major cryptos, as it hasn’t shown any buying pressure whatsoever since early September, at a time when many digital tokens have appreciated manyfold.

The number of wallets staking the ADA coin crossed the 1 million mark on December 5. Cardano remains a leading crypto in staking, despite being overtaken by Solana recently, which is remarkable taking into account the fact that the staking option only went live with the Alonzo upgrade in September. But, ADA/USD remains in the bearish zone after the weekend crash, although, I am looking to buy this cryptocurrency, if it gets close to the $1 level, which is a strong support zone.

ADA/USD