Aside from Cardano’s Success, the US Dollar Is Hitting New Highs
In one of U.Today’s market reviews, we mentioned how Cardano could be on the verge of a breakout that could become a starting point for a new rally to help the cryptocurrency gain a solid foothold at the top of the market. could. As we expected, a breakout has occurred.
13% rally and reversal
On the ADA/BTC trading pair, one of the biggest Ethereum competitors started rallying during the weekend trading session as bulls were able to break local resistance with less selling pressure than on regular trading days.
Unfortunately, after the bears woke up, ADA faced an immediate increase in negative trading volume and lost almost 2% of its previously gained value. While the coin has not lost even half of what it has gained during the weekend trading, this should be considered a worrying sign.
With the negativity prevailing in the cryptocurrency market, bitcoin is likely to face higher selling pressure, which could push ADA against BTC and create a false sense of security for investors.
If we take a look at the ADA/USD pair, it becomes clear that the asset failed to break above the local resistance level of the 50-day EMA. Another failed attempt to break the moving average would be the third time that ADA could not enter recovery mode, which could be a bittersweet bullet for supporters of the coin on the market.
US dollar pressure
The DXY index, which represents the movement of the US dollar against a bracket of foreign currencies, rose to a 20-year high today, showing how far the financial market is from returning to conditions seen over the past 12 years.
Tighter monetary policy is still providing significant pressure on risk-averse assets, including cryptocurrencies, which have lost nearly 70% of their value since looking back in November.
With the rising value of the world’s leading currency, institutional investors move their holdings towards the US dollar or investment instruments that benefit from the currency’s rising value.
Less than 10 days left to merge
Beginning next week, we will finally see the implementation of the biggest update in the digital asset industry for the past year. Ethereum will no longer use the PoW consensus algorithm.
Miners are still shifting their hashpower to alternative options such as Ethereum Classic or Ravencoin, which recently topped the top most profitable cryptocurrencies in the past 24 hours.
As more miners move to networks like Ravencoin and Ethereum Classic, investors expect those networks to grow exponentially as their fundamental value increases due to the power invested in their blockchains.