As the daily trading session nears closing with less than two hours remaining, Bitcoin (BTC) struggles to maintain the pivotal support level of $110,500. The continuation of recovery in altcoins hinges on preserving this critical threshold. An inflation report, the first in seven years, is due on Friday, and no further reports will follow if there is a shutdown. What current data do the charts reveal for Cardano (ADA) and Solana (SOL) coins? Michael Poppe describes what he considers the best graph and highlights its implications.
Understanding Key Cryptocurrency Charts
Michael Poppe’s analysis emphasizes the significance of comparing altcoin market caps with BTC’s valuation. He suggests that examining these graphs over the long term can help decipher the stages of market cycles. If Poppe’s insights hold true, we might be at the dawn of a bull market, signaling an imminent surge.
“I added the MACD because it represents the current phase of the cycle compared to the previous one. Where are we? At the inception of a bull market. This period marks the longest bear market in altcoin history, frustrating many investors. However, with indicators pointing upwards, selling now would be a shortsighted decision.”
Poppe equates the recent market downturn with significant events like FTX and COVID-19. He notes that markets hit rock bottom during these cycles. When comparing the current MACD structure with former cycles, it mirrors what was observed in the first and second quarters of 2020. The aftermath was a robust bull market.
Cardano (ADA) and Solana (SOL) Projections
Cardano (ADA) hovers around $0.663 and could experience further decline based on whether BTC maintains its key level. Lark Davis recently shared a chart highlighting the significance of the MACD golden cross, which previously led to a 60% price surge. While history may not repeat itself exactly, favorable external factors could lead to similar patterns in the crypto market.
“ADA needs to surpass the resistance zone between $0.74 and $0.77. Additionally, a downward resistance line established in August awaits.” – Lark Davis
Carl Moon forecasts a slow but steady climb for Solana (SOL), predicting a return to $211.