ADA and SOL lead the way as crypto market experiences price decline
The crypto market is a sea of red, with Solana’s SOL, Cardano’s ADA tokens, and other alternative cryptocurrencies taking a bigger hit than bitcoin and ether. The move seems typical of a break often seen after notable rallies.
ADA was trading at $ 2.67 at 10:53 a.m. UTC, down 7.6% on a 24-hour basis, and SOL was down 13% to $ 68, according to data source Messari. ADA debuted on Japanese cryptocurrency exchanges today. Earlier this month, Sébastien Guillemot, CTO of dcSpark and former executive of Cardano’s founding entity, EMURGO, greeted ADA’s entry into Japan is similar to listing on Coinbase, the US-based, Nasdaq-listed cryptocurrency exchange and institutions’ preferred avenue for accumulating bitcoin.
XRP, polkadot and dogecoin are also down more than 8%. Meanwhile, bitcoin was changing hands at $ 47,500, down 3.7%, and Ether was trading 5.5% down to $ 3,100, according to data from CoinDesk 20. All sub-sectors, including decentralized finance and non-fungible tokens, were flashing red.
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Alternative cryptocurrencies seemed ripe for a pullback, according to analysis platform Laevitas, as holding long positions on many coins had become too expensive. “Paying more than 100% annualized for a long time cannot last forever” Laevitas tweeted, adding that the price drop looks like a healthy correction.
Some coins like ADA and SOL seemed overbought, having recently hit record highs and outperformed bitcoin by a significant margin. For example, ADA has grown 187% and SOL by 272% over the past four weeks, more than double bitcoin’s 70%.
“The duo of Cardano (ADA) and Solana (SOL) have seen sky-rocketing increases in price and valuation lately, both posting new all-time highs at $ 2.97 and $ 81.81 respectively,” Pavel Shkitin, CEO of the Nominex.io cryptocurrency exchange mentioned. “Despite the technology superiority of the two tokens, the push in recent days is somewhat unprecedented, and the current reversal is an expected reaction.”
James Wo, Founder and CEO of Digital Finance Group, said it was normal for investors to reduce their exposure and take profit to enter at a lower price, as we saw the market signal that a short-term high has been achieved.
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Bitcoin, the leading cryptocurrency by market value, was scheduled to take a hiatus on Wednesday as exchanges saw an increased influx of coins amid renewed selling by whales.
A similar dynamic was observable in the Ethereum token of Ethereum. According to blockchain analytics firm Santiment, the exchanges received 779,880 ETH on Monday, the highest number since June 21. “Judging from the on-chain data, it could be a whale that may be looking to make a profit,” Santiment said in a research note released Tuesday.
Analysts remain confident in the long-term outlook for major cryptocurrencies. Laurent Kssis, managing director of exchange traded products at 21Shares, predicts a return of institutional demand in the bitcoin market after the Jackson Hole Symposium on Friday.
Nominex.io’s Shkitin expects so-called Ethereum killers ADA and SOL to return to their upward trajectory. “With what Cardano, thanks to its upcoming Alonzo upgrade, is expected to usher in and Solana’s flourishing fundamentals, these price drops are temporary at best and a reversal is imminent in the short to medium term,” he said. he declares.
Also Read: Cardano Alonzo Hard Fork: What You Need To Know