Cardano and Solana attempt a recovery

Tokens from the first layer After plunging in the last seven days, Cardano and Solana look to have hit oversold […]

Tokens from the first layer After plunging in the last seven days, Cardano and Solana look to have hit oversold territory. It remains to be seen whether these altcoins can gather enough traction to overcome critical support.

Cardano and Solana both exhibits buy signals

After suffering big losses over the past week, Cardano and Solana look to be preparing for positive impulses.

Since June 8, the seventh-largest cryptocurrency by market cap has declined by more than 28%. ADA has hit a low of R7,06 and is currently trading at R7,54. Interestingly, a buy signal appeared on Cardano’s 12-hour chart, indicating a possible rebound.

The Tom DeMark (TD) Sequential indicator just formed a bullish red nine candlestick shape. The technical pattern suggests a one-to-four candlestick upswing, which could assist Cardano in regaining lost ground. A surge in buying pressure near the current price levels could spark an increase to R8,82 or possibly R10,91.

Cardano must, however, remain above the R7.06 support level in order to validate the bullish forecast. Failure to do so may result in a surge in sell orders, sending ADA to R5,94.

Cardano pricing graph

Solana has also been affected by the cryptocurrency market downturn. It has dropped 38% in the last week to a recent low of R414. Despite the massive losses, the RSI displays a bullish divergence, indicating that SOL can recover.

After showing a buy signal on SOL’s 12-hour chart, the TD setup lends credence to the bullish outlook. It formed a red nine-candlestick pattern, which could signal the start of a one-to-four candlestick upswing. To do so, Solana must close above R498.

Slicing through such a significant resistance level could provide SOL with the impetus to push toward R578 or even R642. Nonetheless, Solana must maintain a price above R417 because a drop below this level could result in a drop to R337.

Solana pricing graph

It is worth noting that the Federal Reserve of the United States is widely expected to hike interest rates later today. These events are known to cause significant volatility in global financial markets, including the cryptocurrency market, so proceed with caution.

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