Cryptocurrencies seem to have resumed the decline again after turning bullish in March. The stopped declining in January and tried to resume the larger uptrend, although that seems to have failed now. Bitcoin (BTC) increased above $48,000 from $33,000, but it is heading down again now and facing the $40,000 level after suffering some heavy losses last week.
Avalanche (AVAX) and Cardano (ADA) reversed lower as well and were both facing moving averages below, which was the bullish/bearish test. But, they have broken below these MAs and now the picture is looking increasingly gloomy.
Cardano Daily Chart – The 50 SMA Didn’t Turn Into Support
ADA still unable to hold gains
Cardano released the Alonzo upgrade in September last year as a main part of the Goguen era, offering services for digital applications (Dapps), smart contracts and decentralized finance (DeFi). But, that didn’t help improve the sentiment for ADA token which has been on a bearish trend since then. Moving averages have done a good job in stopping the retraces higher and reversing the price lower.
Cardano had been one of the most bearish cryptocurrencies among the major ones during this period, as it fell to $0.75 in February although the real support zone formed around $0.80. Last month we saw a bullish reversal, which pushed the price above the 50 SMA (yellow) and the 100 SMA (green). But it couldn’t hold the gains up there and this cryptocurrency has turned lower again, but it’s not clear if the bearish trend has resumed until ADA/USD prints a lower low.
Avalanche Daily Chart – AVAX Threatening the Support Below $80
Avalanche falling below the 200 SMA again
Avalanche retreated from around $146 to $54 during January, despite showing resilience during the last two months of 2021, when the market was turning bearish. But the fall in the TVL (total value locked) in the DeFi space due to the Wonderland controversy pulled this cryptocurrency down with it.
The [price pierced the 200 SMA (purple) on the daily chart, but reversed higher again, although a resistance area has formed around the $100 level, which rejected the price. Today AVAX/USD is slipping below the support under $80 and the 200 SMA as well. But, we will wait for the next support at around $55, since the sentiment in the crypto market has turned quite bearish.
ADA/USD
