Finally, cryptocurrencies are showing some bullish signs after being in decline for three months. They have depreciated significantly in that time, with Bitcoin falling from $70,000 to $33,000 and Ethereum from $5,000 to $2,200. The decline stopped two weeks ago, but the price held on to the Litecoin LTC and Cardano support zone and showed no willingness to turn bullish.
However, sentiment has improved over the past few days, with Bitcoin surging to $42,000 while Ethereum broke through $3,000. This wasn’t the only attempt to reverse the bearish sentiment in the crypto market, and LTC and ADA are facing some decent resistance indicators above, so let’s see if they’ll be able to clear them.
Litecoin on track to 50 SMA after bouncing off support
Litecoin is rolling out what is probably its biggest upgrade, but that hasn’t sparked much interest for the LTC token, which has fallen from below $300 to $100 and even broke this major support level despite not having a daily close below. So the support zone around $100 has held and after trading above this level for two weeks, LTC/USD has started to rally as the crypto market declines higher.
However, it is still a bit early to say if the trend is actually turning bullish. The MimbleWimble upgrade is designed to make Litecoin transactions more secure and scalable, which should help adoption. But market sentiment was bearish, so LTC failed to show any signs of life. Now, if sentiment remains positive, we will see if Litecoin is able to scale the 50-day SMA (yellow), which previously acted as resistance.
Cardano Daily Chart Analysis – Will ADA Break the Triangle?
Cardano is forming a triangle on the daily chart
Cardano also launched its biggest upgrade in September last year, but it didn’t garner much interest. Since then it has been falling, even in October when the crypto market made some massive gains. The moving averages have turned into solid resistance on the daily chart, specifically the 50-SMA (yellow) and 100-SMA (green).
The congestion-related issues at the first decentralized exchange (DEX) SundaeSwap, which was published this year, did not help the situation for ADA either. There are further developments for Cardano as Plutus, Cardano’s execution platform for deploying smart contracts, is expected to increase the storage unit size, while the block size could increase by up to 11% to make Cardano more scalable. Now the price has bounced off the $1 support, but ADA/USD is also facing the 50-day SMA (yellow). which will be an important test for buyers. If they push the price above, they have a good chance to continue the uptrend.
Cardano Coin ADA live chart