Solana’s (SOL) Struggles Continue as Key Support Breaks, Cardano (ADA) Sees Loss of Support, Avalanche (AVAX) Faces Recovery Challenges
Solana has been grappling with a challenging period as it fails to hold crucial support levels. Despite its initial promise, Solana’s ecosystem has faced setbacks, including a slowdown in new meme coin deployments and a decline in DeFi volume. The technical chart for SOL paints a worrisome picture as the price breaches important support at the $95 level, deviating from its once strong uptrend. The lack of enthusiasm in the NFT sector within Solana’s ecosystem and recent outages have also contributed to a loss of investor confidence.
Cardano has slid below the critical $0.5 support level, raising concerns about its short-term trajectory. The next line of defense for ADA lies with the 100-day EMA, a closely watched indicator that could provide support or resistance depending on price action. While the situation is not entirely grim, declining volume during the downward price movement suggests a potential loss of conviction among sellers. If the asset finds support at the 100 EMA and volume picks up, there could be a stabilization or reversal. However, a failure to hold the 100 EMA could result in further losses, with the next support level being the 200-day EMA.
Avalanche, once hailed as a leading alternative L1 network, faces a challenging path to recovery. Recent price movements have raised concerns as AVAX drops below the 26-day EMA, indicating potential further declines. The breach of the 26 EMA is troubling as it serves as a crucial short-term momentum indicator. The price action suggests a trajectory toward the 100-day EMA, which could undermine investor confidence and lead to a bearish outlook for the asset. The lack of robust activity in terms of large transactions and total volume further adds to the challenges faced by Avalanche. Immediate support levels for AVAX lie around the $30.20 mark, with resistance forming near $34.61. To invalidate the bearish scenario, AVAX would need to reclaim its position above the 26 EMA and demonstrate significant on-chain activity and transaction volume.