Cardano (ADA) is more resilient than Bitcoin (BTC) from a technical perspective, here’s why

Arman Shirinyan

The market is beginning to show signs of a market-wide reversal, but some assets are successfully holding pressure

The collapse of some assets including LDO, Bitcoin and Ethereum is the first indication investors have received in this short-term bull run in the market. But could it be the signal of a longer-term reversal that will take the market back into the ongoing downtrend, or is it just a temporary and necessary correction?

ADA still in uptrend

While other assets are either in a correction or at a stalemate, Cardano’s coin has been rising steadily and has not broken the local uptrend, making it a short list of assets that have risen in the market.

Source: TradingView

Bitcoin, Ethereum, and other assets are currently consolidating around their local highs, which could be a sign of a trend reversal anytime soon. Unfortunately, Cardano’s resilience was followed by far more subtle price action compared to Bitcoin’s 40% historical record, as ADA has gained just 10% of its value since the rally began.

Lido sends a message

The movement of LDO is not often seen as a signal for the cryptocurrency market, but at the same time it gives investors an important signal about the state of Ethereum staking. LDO price action is directly tied to the amount of ETH staked on the network.

Whenever the network sees an influx of staked volume, LDO enters the local uptrend as demand for the token increases as many investors choose Lido Finance as their main vehicle to gain liquidity while locking ether into smart contracts.

Yesterday LDO collapsed and fell below the local 21-day moving average, which usually acts as a signal line that gives us information about the strength of the existing trend. The move below projects a shift in the staking trend, which was bullish earlier in the year.

Aside from a stalemate in Ethereum staking, however, LDO’s price action could also reflect increasing competition in the liquidity-providing industry as more projects emerge with similar business models to Lido’s, while offering much more flexible terms for investors.

Aptos’ rally is fading

The massive liquidation volume of around $20 on Aptos led to a massive reversal of the token in the market as it lost almost 20% of its value almost immediately. All the signs we are seeing on it today suggest that the token could reverse and resume the downtrend anytime soon or face another stalemate.

Aptos’ trading volume has been slowly falling since the token hit the local high on Jan. 26, and this will most likely be the main reason for the reversal as retailers massively close their positions after a series of liquidations.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers