Top altcoins Solana (SOL) and Cardano (ADA) continue their downward trend this week, with both assets declining over 11% in the past seven days. Technical indicators suggest further bearish momentum, raising concerns among investors. Below, we analyze the key factors driving this crash and what to expect next.
Key Factors Behind the SOL and ADA Downtrend
- Bearish MACD Crossovers: The Moving Average Convergence Divergence (MACD) indicator shows a clear bearish crossover for both SOL and ADA, signaling potential prolonged declines.
- Fibonacci Retracement Levels: SOL is nearing its 61.8% retracement level ($175.16), while ADA faces rejection at weekly resistance ($1.18).
- Weak RSI Readings: The Relative Strength Index (RSI) for SOL (39) and ADA (48) indicates oversold conditions and sustained selling pressure.
Solana Price Analysis: Targeting $155?
Solana’s price closed below the 50% retracement level ($192.20) last week and now trades near $183.30. Key observations:
- Critical Support: A daily close below $175.16 could trigger a 15% drop to retest November’s low of **$155.11**.
- Recovery Scenario: If SOL reclaims $201.85**, it may rally toward **$223.18 (January high).
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Cardano Price Outlook: Risk of 20% Drop
Cardano faces similar bearish pressures:
- Current Price: ~$0.94 (down 11.31% weekly).
- Next Support: A breakdown could push ADA to $0.74 (20% decline).
- Upside Potential: A rebound above $1.18 might revive bullish momentum.
FAQ Section
Q1: Why are SOL and ADA falling simultaneously?
A: Both altcoins are influenced by broader market sentiment, MACD bearish signals, and profit-taking after recent gains.
Q2: What’s the worst-case scenario for SOL?
A: If SOL breaches $175.16**, it could plummet to **$155—a level last seen in early November.
Q3: Is ADA a good buy at current prices?
A: High risk. Wait for confirmation of support holding near $0.74** or a reversal above **$1.18.
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Key Takeaways
- Technical Weakness: MACD and RSI indicate prolonged bearish trends for SOL and ADA.
- Critical Levels: Watch $175.16 (SOL)** and **$0.74 (ADA) for potential breakdowns.
- Broader Impact: Altcoins often mirror Bitcoin’s movements—monitor BTC trends for clues.
Disclaimer: This content is for informational purposes only. Always conduct independent research before investing.