Cryptocurrency market is still in red while Cardano is showing some exceptional performance
Despite the mild recovery we saw on the cryptocurrency market only a day ago, most digital assets remain in the red. Bitcoin has lost 14% of its value during one week of trading, which, however, is not a number that experienced crypto traders are afraid of.
Cardano gains traction against Bitcoin
The price performance of one of the most notable assets on the market against Bitcoin has been more than successful in the last few weeks and even months. The main reason behind it is the upcoming Vasil hard fork and the questionable future of Ethereum that switched off the PoW mechanism for good.
From a technical standpoint, Cardano is also showing a prominent price performance, gaining over 8% to its value in the last seven days. At press time, it is breaking the upper border of the ascending triangle for the third time this month.
The breakthrough is an important step toward the trend reversal on ADA. The cryptocurrency lost over 60% of its value since the ATH and has not had a chance to recover, especially with the market conditions we have lived through in the last few months.
Cardano also shows that it is not only rallying against Bitcoin but is also showing a better-than-average performance against the United States Dollar despite its strengthening against a bracket of foreign currencies.
Regulators create toxic environment around Ether
Another important factor is regular lack of clarity around Ethereum, which became extremely similar to a security, which is why regulations may affect its investors and cause numerous problems for projects that are willing to start working on the network.
If new regulatory policies are released for Ethereum, the asset’s value may start tumbling rapidly, specifically because of the lack of network usage we are seeing now, considering the poor performance of the DeFi and NFT industries.
Unless building on the network becomes popular again, both the profitability and revenue of Ethereum stays at an extremely low level, which is why the selling pressure on it increased exponentially in the last few days despite the Merge update.
Bitcoin waits for monetary policy easing
Despite the relief on the cryptocurrency market, Bitcoin is still in the process of moving through correction cycles after yet another rate hike initiated at the FOMC meeting on Sept. 21.
Unfortunately, the uncontrollable inflation shows us that the regulator is still going to increase the key rate in the country despite the critical conditions on the stock market, which, as we know, dictates the movement of digital assets.
At press time, Bitcoin is changing hands at $18,900 and still moving around this year’s bottom. Yet another breakdown would send the first cryptocurrency to the next support level at approximately $16,000.