Cryptocurrency Market Still in the Red as Cardano Shows Outstanding Performance
Despite the slight rally we saw in the cryptocurrency market just a day ago, most digital assets remain in the red. Bitcoin lost 14% of its value in one week of trading, which is not a number that experienced crypto traders are afraid of, however.
Cardano gains ground against Bitcoin
The price performance of one of the market’s most notable assets against Bitcoin has been more than successful over the past few weeks, if not months. The main reason behind this is the upcoming Vasil hard fork and the questionable future of Ethereum which has permanently disabled the PoW mechanism.
From a technical standpoint, Cardano is also showing strong price performance, gaining more than 8% against its value over the past seven days. As of press time, it is breaking the upper border of the ascending triangle for the third time this month.
The breakout is an important step towards the trend reversal on ADA. The cryptocurrency has lost over 60% of its value since the ATH and hasn’t had a chance to recover, especially with the market conditions we’ve been experiencing for the past few months.
Cardano also shows that it is not only rallying to Bitcoin, but also showing an above-average performance against the US Dollar despite strengthening against a range of foreign currencies.
Regulators create a toxic environment around Ether
Another important factor is the regular lack of clarity around Ethereum, which has become extremely similar to a security, which is why regulation can affect its investors and cause many problems for projects that want to start working on the network.
If new regulatory policies are released for Ethereum, the value of the asset could begin to fall rapidly, especially due to the lack of network usage we are currently seeing given the poor performance of the DeFi and NFT industries.
Unless building on the network becomes popular again, Ethereum’s profitability and revenue remain at an extremely low level, which is why the selling pressure on it has increased exponentially in recent days despite the setting. update from Merge.
Bitcoin awaits monetary policy easing
Despite the relief in the cryptocurrency market, Bitcoin is still going through corrective cycles after another rate hike initiated at the FOMC meeting on September 21.
Unfortunately, the uncontrollable inflation shows us that the regulator will further increase the key rate in the country despite the critical conditions in the stock market, which, as is known, dictates the movement of digital assets.
As of press time, Bitcoin is changing hands at $18,900 and still moving around this year’s low. Another outage would send the first cryptocurrency to the next support level at around $16,000.