Ripple (XRP), Cardano (ADA) Crushed Over Anti-Altcoin Season Fears
Yerevan (CoinChapter.com) — Ripple’s XRP and Cardano’s ADA stand among the biggest cryptocurrency market losers this week as fears of anti-altcoin season hit traders’ conscience.
The declines appear in the wake of an ongoing correction in the Bitcoin market. The flagship cryptocurrency shed more than 20 percent of its value after establishing a record high of $64,899 last week (data from Coinbase).
Since Bitcoin remains positively correlated with most of its rival assets — being the center of crypto liquidity, its downside correction triggered a similar response from the altcoin market. XRP and ADA appeared caught in the short-term bearish storm.
CoinChapter.com presents you with a brief outlook of the said altcoins and what they hold for investors in the sessions ahead.
XRP: A Crucial Support Held
XRP, the native token of the Ripple blockchain, was briefly up over 800 percent on a year-to-date (YTD) timeframe as of April 14. Traders flocked back into the controversial token after assessing a series of legal wins for its backers, Ripple Labs, as they fought a lawsuit filed by the US Securities and Exchange Commission (SEC).
The agency alleged that Ripple’s top management sold illegal securities to its early investors late last year using XRP. Their accusation prompted many US-based exchanges, including the Nasdaq-listed Coinbase, to remove XRP from their trading platforms. It also led the Ripple token’s price lower by 78 percent during the November-December 2020 session.
The selling pressure returned in the second quarter of 2021 over XRP’s overvaluation fears. Traders apprehensively secured their profits at the token’s recent higher highs, while bids for further upward XRP/USD dropped. The pair declined by almost 42 percent from its latest top, as a result, and now sits near crucial short-term support defined by its 20-day exponential moving average.
Ripple tests the 20-DMA as support but risks breaking down below it. Source: XRPUSD on TradingView.com
Should XRP/USD break below 20-DMA, its next downside target would shift towards the 50-day simple moving average (50-DMA; the blue wave). An additional support confluence there comes from the 23.6% Fibonacci retracement level of $0.759.
Meanwhile, a strong bounce off the 20-DMA wave would have the XRP/USD rate test the 50% Fib level of $1.447. It has an upside target near $1.755.
ADA: A Bullish Pattern Brewing
ADA rose majorly in the first months of 2021 because of its parent blockchain Cardano’s growing rivalry with Ethereum, the leading smart contracts platform currently grappling with higher gas and transaction fees issues. That paved the way for many rivaling blockchain projects to shine, leading to speculative growth in the native tokens’ markets.
Cardano also went through a much-anticipated update, dubbed as “Mary,” that allowed users to create non-fungible tokens — digital files representing ownership. The NFT mania also contributed to the rise in ADA/USD exchange rates all across 2021. At its best, the pair was bidding for as high as $1.57, up 762.33 percent YTD.
The last week saw ADA shedding a considerable portion of its gain. The token fell by a maximum of 33.64 percent before recovering higher in the last three daily sessions. Nevertheless, it looked like an attractive asset to sell for lucrative profits. Cardano has no major news coming, at least in April.
Yet, technically, ADA/USD hints at a bullish breakout.
That is because ADA now trends inside an Ascending Triangle pattern. They are bullish continuation patterns, confirmed after the altcoin moves upward as it tests a horizontal trendline resistance repeatedly for a breakout move. The altcoin typically breaks above the price ceiling. It then rises by as much as the widest distance between Triangle’s upper and lower trendlines.
That said, ADA/USD now eyes a run-up towards $2.22.
Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN.
Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.
Luna Foundation Guard- LFG has spent over $3 billion in Bitcoin (BTC) in an attempt to save UST. Investors...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.